Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk teased “Master Plan 4” for the electric-vehicle maker earlier this week, promising that it will be “epic,” and a bullish analyst on Thursday added to the excitement by calling upon Tesla investors to be prepared for something else other than cars.
The Tesla Analyst: Morgan Stanley’s Adam Jonas reiterated an Overweight rating on Tesla shares and a $310 price target, implying a 70.73% upside from current levels.
The Tesla Thesis
Potential Master Plan 4 Blueprint: “Anything but cars,” said Jonas in the note regarding what could be part of Tesla’s Master Plan 4. “This will outline the “next strategic phase of Tesla’s scientific and business evolution,” the analyst said. “Ok, Tesla will still make cars, but we think investors should prepare for something else.”
The Master Plan 4 (MP4) is seen as Musk’s acknowledgment that China may have won the battle for affordable traditional EVs, Jonas said. He also delved into the likely focus of the plan.
AI and robotics, according to the analyst, have opened up new total addressable markets for Tesla, moving the company deeper into new disciplines, he said. He expects the plan to be underpinned by “Tesla’s commercial ambitions in AI, robotics, hybrid computer,” including distributed thermal and computing in the car, spanning from cloud to edge.
“Investors should prepare for MP4 to more conspicuously connect Tesla with Elon’s ...