Morgan Stanley questions if ‘$500 bull case in play’ for Tesla after election

Morgan Stanley argues that Elon Musk’s entry into the political sphere has “expanded investor thinking around Tesla’s (TSLA) fundamental outlook” and questions if the current rerating is “temporary… or will Tesla begin to play a greater role in the US renewable/autonomous industrial complex?” Elon Musk’s public support for President-elect Trump has “vaulted Tesla’s CEO to be considered a powerful voice in the incoming administration” and Tesla shares have responded by rallying by over 40% to a two-year high and above the firm’s $310 price target the analyst noted. With so many policy variables in play, the firm is not, at this time, changing its forecasts or implied multiples driving its base case price target or Overweight rating, but it questions if 2030 assumptions underpinning its current $500 bull case – including total company FY30 revenue of approximately $550B with EBITDA over $140B – are now “in play.”