TSLA - Stock picks for the zero-emission commercial vehicle transition

Morgan Stanley takes a deep dive into the impact of the adoption of alternative powertrains in the commercial vehicle industry. The firm notes the combination of stricter emissions regulations, battery advancements, increasing viability of Green Hydrogen and influx of fresh capital in Zero Emissions Vehicle startups has re-ignited the debate around the timeline for ZEV adoption in the global Commercial Vehicle market. MS estimates the total ZEV truck Total Addressable Market will grow from <$5B today to ~$30B by 2025 and ~$600B by 2050, resulting in a ~20% CAGR over the 2020 to 2050 time period.How do investors play that long-term ZEV trend? Among truckload carriers, the firm see the highest degree of implied EBIT upside from ZEV adoption at US Xpress (USX), Schneider National (SNDR), ArcBest (ARCB) and Knight-Swift Transportation (KNX). Among OEMs, PACCAR's (PCAR) current share price is said to more than appropriately discounts the ZEV risk to

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Stock picks for the zero-emission commercial vehicle transition