Stifel is optimistic about Tesla's "growth potential" in the coming years and initiates coverage with a "buy" rating

According to Zhitong Finance, Stifel has initiated coverage on Tesla (TSLA.US) for the first time, giving it a "buy" rating with a target price of $265. The investment bank pointed out that the electric car manufacturer benefits from having a vast global supply chain, cost advantages from internal manufacturing support, and strong profit margins. Stifel analyst Stephen Gengaro and his team believe that with the upcoming improvements to the Model 3 and Model Y models, as well as the launch of the next-generation Model 2, Tesla will achieve strong multi-year growth in the next three years. Gengaro also believes that Tesla's full self-driving plan can bring value through sales, licensing, and potential RoboTaxi opportunities. The recent wave of earnings forecast downgrades is seen as alleviating pressure on Tesla's stock. In addition to electric vehicles, there is also the energy business In addition to the benefits brought by the electric vehicle business, Tesla's energy business has recently received positive outlook from another Wall Street major. Morgan Stanley believes that due to the electricity demand brought by the artificial intelligence (AI) boom, Tesla (TSLA.US) will become a more important player in the U.S. energy market. Morgan Stanley values Tesla's energy business at $130 billion, equivalent to $36 per share. Morgan Stanley maintains a positive outlook on Tesla, with an "overweight" rating and a target price of $310. Morgan Stanley's analysis indicates that by 2030, the electricity consumption of U.S. data centers may be equivalent to that of 150 million electric vehicles. In other words, from 2023 to 2027, the expected growth in U.S. data center electricity is equivalent to adding 59 million electric vehicles on U.S. roads, or a 21% increase in the total number of vehicles in service. Tesla is seen to have a unique advantage to benefit from investments in the U.S. grid, with the significant demand for artificial intelligence processing and data centers accelerating this investment. Morgan Stanley analysts stated, "We forecast that the growth rate of the energy storage business (compound annual growth rate of 29% from 2020 to 2040) will be faster than the solar business (compound annual growth rate of 24% from 2020 to 2040), and the profit margin will also be higher than the core automotive business, with the inflection point occurring in 2023." Assuming an operating profit margin of 16.2% and a tax rate of 25%, Morgan Stanley analysts believe that by 2030, Tesla's energy business could potentially increase after-tax net operating profit after tax (NOPAT) by $3.95 billion, exceeding $1 per share in earnings. While Tesla is gradually becoming a direct competitor to Fluence Energy (FLNC.US), the growth rate of the energy storage market is sufficient to benefit both companies