The Analyst’s Take
In the seemingly unending saga of electric vehicles, Adam Jonas of Morgan Stanley emerges as a voice of reason, a storyteller who dares to dream big. With a bullish outlook on Tesla Inc, Jonas paints a vivid picture of a “power couple” in the making – a duo poised to invigorate the U.S. EV realm. Boldly claiming that the partnership between Tesla and CATL could be a monumental game-changer, Jonas sets the stage for a narrative worthy of investors’ attention.
The Current Landscape
Against the backdrop of a landscape fraught with complexities, Jonas shines a light on the dire need for top-notch, yet affordable batteries in the U.S. EV market. Acknowledging the intricate dance of geopolitics and security concerns, he points to China as the beacon of hope. While the American EV market languishes in under-penetration, China stands as a bastion of battery oversupply – a stark dichotomy that begs for harmonization.
A Glimpse of Hope
Recent murmurs suggest a potential collaboration between CATL and Tesla in the realm of fast-charging batteries, a development that could potentially shift the tides in the EV world. Although neither party has confirmed the whispers, the allure of a more affordable Tesla model priced at $25,000 lingers tantalizingly on the horizon. Jonas hints at the necessity of Chinese involvement to breathe life into this ambitious pricing strategy, highlighting the possibility of licensing battery technology to pave the way.
The Path Ahead
In a world where protectionism casts a long shadow, Jonas’ words ring true – the fusion of Western ideals with Chinese innovation may hold the key to unlocking higher EV penetration. As whispers of a Tesla-CATL synergy grow louder, the promise of a more inclusive, collaborative future beckons. With a price target of $320 on Tesla and an ‘overweight’ rating, Jonas stands as a beacon of optimism in a sea of uncertainty.
Market Movement
Tesla’s shares registered a 2.92% surge, closing at $177.67 on Tuesday. Despite a tumultuous year with a 28.5% decline in stock value, according to Benzinga Pro, the electrifying potential of the Tesla-CATL union hints at a brighter tomorrow for investors and enthusiasts alike.
Check out more of Benzinga’s Future Of Mobility coverage here.
Read More: Cybertruck Lead Engineer Fires Back After User Pokes Fun At Tesla’s Advice Against Auto Wash: ‘Manual Doesn’t Suggest You Shoot It Either’
