Morgan Stanley says EV infrastructure plan could possibly expand Tesla advantage

Morgan Stanley analyst Adam Jonas said the $174B EV infrastructure package proposed by the Biden Administration could possibly, “in some scenarios,” widen Tesla’s “disproportionate advantage” over legacy auto players and new entrants. He believes investors “may need to prepare for” an EV infrastructure bill that includes purchase incentives for EVs, development of charging and manufacturing infrastructure, and grid enhancement that could disproportionately benefit Tesla and pure BEV startups in the near-term, but also set up a “relevant/if not thriving terminal value” long-term for other players in the electric vehicle market. Jonas, who argues that “auto investors face greater risk NOT OWNING Tesla shares in their portfolio than OWNING Tesla shares in their portfolio,” keeps an Overweight rating and $880 price target on the stock.

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