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Morgan Stanley said Tesla would have a huge advantage over President Biden’s infrastructure bill.
- Biden’s $ 2 trillion proposal raised $ 174 billion for the electric vehicle sector.
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If it succeeds, the bank has said it will exacerbate Tesla’s advantage over other players.
- See more stories on Insider’s business page.
According to Morgan Stanley analysts, one of the companies ahead of President Joe Biden’s massive infrastructure bill is Tesla. According to them, owning the share is a greater risk than not.
Biden’s $ 2 billion infrastructure proposal has raised $ 174 billion for the electric vehicle sector, as the president wants to better equip US businesses to compete with China, which is currently the market leader in electric vehicles.
Analysts at Morgan Stanley, led by Adam Jones, said in a note published on Wednesday that Biden’s bill would increase Tesla’s advantage over legacy players and new entrants.
The policy used to accelerate sales of electric vehicles will slow down sales of cars with internal combustion engines, analysts said.
The analysts did warn that the expansion could follow a volatile and non-linear path.
“It will probably be hampered by a maze of national and local laws that will have advantages and disadvantages for different car manufacturers, depending on the year you choose to analyze,” they said. “Put it all together, and we believe that car investors run a greater risk of not owning Tesla shares in their portfolio than owning Tesla shares.”
The electric carmaker revealed last week that 184,800 vehicles were delivered and 180,338 cars were produced for the first three months of 2021, despite strong production and supply chain winds. Tesla delivered 180,570 cars in the last quarter of last year.
Wedbush analyst Daniel Ives said the results in the first quarter were a “paradigm shift” and showed that global pent-up demand for Tesla’s Model 3 and Y was on track to reach its next growth stage .
The strong start to the year for the company proved that founder Elon Musk’s efforts to promote global operations in Europe and China are bearing fruit.