Morgan Stanley analyst Adam Jonas has continued to heap praise on Tesla (NASDAQ:TSLA) as he believes investors are yet to witness the importance of Elon Musk's company to the wider EV sector in the US.
Bloomberg reported that President Biden may invoke the Defense Production Act to encourage domestic production of key materials for EV batteries.
On how this may affect Tesla, Jonas writes:
"So where does Tesla fit in? Were not going to tell you that Tesla is a car company. Or a tech company. It's both. But it's also an energy company. And what we're seeing emerge over the course of this year is Tesla as a renewable energy on-shore infrastructure company. We believe Tesla's role in constructing the EV supply chain (upstream) and EV infrastructure (downstream) will become increasingly evident to the investment community over the next few weeks/months," Jonas said in a client note.
The analyst also reflected on the recent EV car sales numbers for February. Global sales rose 113% YoY with Tesla's market share at around 20%. This compares to a 12% market share last month and a 16% share YTD.
Currently, EV-Volumes suggests that Tesla has sold approx ~130k units through Feb with the last month of the quarter always the biggest push and contribution to units for the company in the Q. Below are forecasts that we've compiled from various sources. Note: last year Tesla delivered 184,877 units in 1Q so these forecasts imply around 72-78% YoY growth, Jonas added.
By Senad Karaahmetovic