June 19, 2014
Is Tesla the most important car company in the world? Morgan Stanley thinks so
THIS IS NOT AN OFFICIAL COMPANY NEWS RELEASE
- FOR THE INFORMATION OF SHAREHOLDERS AND INTERESTED PARTIES ONLY -
From fledgeling startup to "arguably the most important car company in the world": that's how analysts at Morgan Stanley defined Tesla Motors Inc. in a research note published Wednesday.
In case anyone had any doubts, "we are not joking," said the analysts, led by Adam Jonas. "Tesla is also emerging as an emblematic force in America's effort to foster high tech manufacturing job growth," they added.
Here is Morgan Stanley's case for Tesla, in three broad themes:
Suppliers want to do business with Tesla
"We hear numerous examples of suppliers who once shunned Tesla who are now considering dedicated line and facilities only to supply [Tesla]"
Much-larger car makers respect it
"A BMW engineer recently explained to us how Tesla's presence has helped invigorate the spirit of automobile innovation that was beginning to run stale, further testifying that BMW will be a stronger company longer-term because Tesla is around. Whoa."
Five states are scrambling to have Tesla's $5 billion 'gigafactory'
A governor "would need a very good reason to say no to a Tesla factory," Morgan Stanley said. Sales forecasts plus a vertically integrated battery factory and charging infrastructure could imply Tesla directly employing 20,000 U.S. workers and indirectly behind more than 100,000 U.S. jobs in the next seven years, the investment bank said.
Moreover, Tesla's "Gen 3″ car --- aimed at the mass market and expected to hit the road around 2016 --- will be the "most American-made car on the road," pushing 90% U.S.-made components, more than a Ford F-150 or a Chevy Silverado, Morgan Stanley said.
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