Tesla’s long-term prospects are closely tied to CEO Elon Musk and the company’s ambitions in artificial intelligence, Morgan Stanley analysts said in a research note.
Analysts emphasized that the compensation package proposed for Musk is key to understanding Tesla’s strategic trajectory.
Morgan Stanley said this “allays concerns about Elon’s long-term commitment to Tesla,” noting that Musk “has expressed his desire to maintain at least a ‘blocking minority’ (25% stake) in the company to have a say in a potential change of control.”
The note added that without a clear short-term succession plan, Musk’s focus on Tesla is likely to intensify as the company scales AI-enabled manufacturing and commercializes physical AI products.
Morgan Stanley indicated that Tesla’s performance targets, which include vehicle deliveries, Full Self-Driving subscriptions, and Robotaxis, “appear achievable on a 10-year horizon,” although the company’s target of $400 billion in adjusted EBITDA would require substantial contributions from AI-driven markets, including its Optimus humanoid robots.
The note explained that converting just one percent of the US workforce to humanoid robots could represent approximately $320 billion in market value.
The bank also highlighted the flexibility of Tesla’s definition of a “bot,” which could include “humanoids, robotic arms, AMRs (autonomous mobile robots), non-vehicular drones, snake-dog robots, robots in space, robotic implants, and much more.”
Finally, Morgan Stanley pointed to potential synergies with Musk’s xAI company, suggesting that the CEO could leverage AI growth opportunities to advance Tesla’s market position.
Analysts concluded that, while execution will be key, the compensation plan “aligns the interests of Tesla’s minority shareholders with those of Elon Musk” and reinforces his long-term commitment to the company.
Morgan Stanley indicated that Musk’s absence from a recent White House tech dinner underscores a “more ‘independent’ strategy” as Tesla seeks leadership in physical AI and renewable energy.
Source: Investing.com
