NKLA - Take the over on EVs - Morgan Stanley

Morgan Stanley analyst Adam Jonas says investors shouldn't overthink the inevitable growth of the EV market with global penetration only at 2% and major automakers fully committed. He notes that the EV industry is growing at a 20% CAGR through 2040, while the internal combustion energy industry will shrink at an estimated 5% CAGR through 2040. Thus, the advice is given to 'take the over' on growth from the 2% mark. California's big move to ban ICE cars is called notable because the state ranks by itself as the 5th largest GDP market in the world and could accelerate the move of fleets (corporate, logistics, rideshare) into EVs. Jonas thinks the California announcement sets up well for Aptiv ([[APTV]] -2.2%) and Tesla ([[TSLA]] -6.0%) in particular. Of course, the list of EV stocks is growing by the day and includes names like Blink Charging ([[BLNK]] -4.9%), Arcimoto ([[FUV]] -4.0%), Spartan

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Take the over on EVs - Morgan Stanley