In a recent analysis on May 22, Morgan Stanley’s Adam Jonas has reiterated his Overweight rating on Tesla Motors (NASDAQ: TSLA), maintaining a price target of $310.
Jonas underscores the pivotal role Tesla plays within the broader ecosystem of Elon Musk’s ventures, particularly in the realm of AI infrastructure investment, which he anticipates could see tens of billions of dollars in capital infusion over the coming years.
The analyst emphasizes that the cost of capital is a crucial determinant in achieving AI dominance arguing that a Tesla devoid of AI integration would inevitably set a precedent, potentially escalating the cost of capital for Musk’s other AI-focused initiatives.
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Conversely, Tesla’s triumph in AI applications would likely lower the cost of capital across Musk’s enterprise network, often referred to as ‘Muskonomy.’
Data acquisition and Tesla synergy
On a fundamental level, Jonas points out that the synergy between data acquisition, infrastructure development, and total addressable market (TAM) within Tesla is indispensable for Musk’s various AI projects. He highlights that the data gleaned from Tesla vehicles significantly enhances AI learning and development, which is a cornerstone for Musk’s ventures.
The stock market expert also draws attention to Tesla vehicles’ unique features—acting as mobile servers, providing computational power, thermal management, and energy storage—positioning them as critical components in the evolving AI-driven hybrid computing landscape.
Jonas projects that over time, the interconnectedness of Musk’s initiatives in social media, generative AI, space communications, and automotive/transportation will become increasingly evident. He specifically points to the upcoming Tesla shareholder vote on June 13 as a pivotal moment for the company’s long-term strategy, with potential implications for significant stock volatility.
As of the market close on May 22, Tesla shares were trading at $180.11, reflecting a decline of $6.49 (3.48%). In pre-market trading, the stock showed a slight recovery, up $1.89 (1.05%) to $182.00.
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