Tesla Analyst Bullish On Musk-Trump Alliance

8 months ago by Steven Loveday 25

Musk-Trump Alliance

Whether or not the new administration supports solar power, it’s very inexpensive, and employs 43 percent of all workers involved in electric power generation. This equates to 374,000 U.S. jobs, compared to 86,000 coal workers.

Adam Jonas, analyst for Morgan Stanley, recently upped his target price for Tesla stock ($305 per share). Many onlookers immediately assume that it’s directly related to the recent “Musk-Trump Alliance.” Jonas clarified:

“There is no way to quantify the value (if any) of Tesla management’s advisory relationship with the new administration.”

Musk-Trump Alliance

Musk and Trump both want to “Make America Great Again.”

However, Jonas is willing to see and acknowledge the correlation:

“When you look at the businesses Tesla is in, you see many areas of overlapping interest. To the extent the new administration prioritizes the creation of valuable, innovative high tech and manufacturing jobs, Tesla stands at the epicenter of that.”

Tesla is one of few automakers left that makes “U.S. made” vehicles. According to Cars.com, as of 2016, there were eight passenger vehicles still made “fully” in America. There were only 30 in 2010. Tesla plans to make a half million cars per year, beginning in 2018, and all of those vehicles should qualify.

We can’t forget that Elon Musk is also the CEO of SpaceX. Space exploration is very near and dear to Trump and his administration. Not to mention that Tesla is now also a substantial solar energy company. Whether or not the new administration supports solar power, it is very inexpensive, and employs 43 percent of all workers involved in electric power generation. This equates to 374,000 U.S. jobs, compared to 86,000 coal workers.

Tesla’s battery storage situation is about just as compelling. Musk vows to mix utility power generation with local power generation. This is just another way that the history-making American company hopes to create a win-win situation of reciprocation with the likes of the new Secretary of State, former ExxonMobil boss Rex Tillerson, and Trump’s administration. Tillerson is actually supportive of a carbon tax, another of Musk’s “babies.”

Musk and Trump both enjoy being in the spotlight. They have grand ideas and they act swiftly. Both want to “Make America Great Again.” Although the way they intend to go about it can be seen as drastically different, if played correctly on both sides, some advantageous strides could be made sooner, rather than later. It will surely be a give and take, but if Musk wants to “get things done,” Trump is literally the man to do it.

Taking all of this into consideration, Jonas chooses to remain bullish on the newfound Musk-Trump alliance.

Source: Teslarati

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25 responses to "Tesla Analyst Bullish On Musk-Trump Alliance"

  1. Texas FFE says:

    I’m sorry but I still can’t support valuation of the Tesla stock. GM sells 19 million cars worldwide and has a stock valuation of $55B but Tesla sells less than a 100 thousand cars worldwide and has a stock valuation of $40B. I think GM stock is undervalued but I think Tesla stock is in a tech bubble that eventually is going to have to pop.

    1. pjwood1 says:

      Nice article. While Jonas is on the sell side, he’s gone both up and down with his price target. It’s always out on a limb to $$ game policy impacts on investment value, but “overlap” is the right theme here. Tesla is no longer a car company. For all we know, Musk’s satellite business will roll under TSLA, too.

      I like these articles on IEV, because one hand washes the other too much to leave them out, by only covering electric vehicles. You can’t extract California’s waiver, from the car company’s prospects, etc. It’s tedious, non-car guy stuff, but inextricably part of the bigger picture.

      And then, for us nerds, getting insight on contracts for utility-storage, will domestic regs favor US batteries like Chinese regs favor Chinese cars, and other questions are the icing that keeps us coming back.

      This is the only car website where you can get rich enough by being a fan, to then go buy the car!

      1. pjwood1 says:

        Oops. Wasn’t answering you FFE.

      2. ¯\_(ツ)_/¯ sven says:

        Satellite business? I thought Elon wanted to start a tunneling business called the Boring Company, which sounds like it will be a big money pit.

        1. MTN Ranger says:

          OK, that made me laugh.

    2. jelloslug says:

      GM has nothing but legacy products for the future and a gigantic pention to fund for decades. Tesla has none of that.

    3. Cavaron says:

      @Texas FFE:
      BMW has a valuation of 55B$ and produces just 2 million cars a year. Tesla can get there in under 5 years. So most of the 40B$ is anticipation, but it is not that far fetched.

  2. Pushmi-Pullyu says:

    Why do we keep getting articles talking about Tesla’s stock price? I submit those have no place on InsideEVs. There are stock investor sites for that, for those interested in the subject.

    And since Morgan Stanley promotes Tesla stock, we can be sure that anything coming from that source will contain only positive, “bullish” info about Tesla Motors… and thus isn’t worth wasting the time it takes to read it.

    To be more succinct: This isn’t an article, it’s an advertisement.

  3. George says:

    This is disgusting. No more Tesla for me. Thanks.

    1. SparkEV says:

      Great! I hope all you morons get off Tesla reservations so I may have a shot at getting one with tax credit. But somehow, I doubt many will jump off. Rather, Dump popularizing Tesla as US company will promote even more people to take interest in Tesla.

      1. Big Soul Hair says:

        I dumped mine.

        1. Leaf2012 says:

          Why, because he is working with directing Trump in the right direction? Would it be better if only the coal and oil budinessess gave him advices?

          1. SparkEV says:

            “Why” is like much of the ideologically driven left and right: logic and facts don’t matter, off-the-cuff emotion drive their lives.

            It’s not Dump who’s trying to destroy Tesla and “green”. All he has to do is try to help “green”, and the ideological left will do the destruction for him. In effect, all these morons getting off Tesla are true supporters of Dump.

            1. George says:

              My Model S was more than an electric car. I was a proud Tesla owner and was happy my money went into advancing their mission. At very least it was a good conversation starter. The car was OK but by no means worth what I paid for it.

              I no longer support Musk in his actions and don’t want to feel obliged to defend Trump when somebody asks me about their partnership.

              1. WadeTyhon says:

                You think Musk wanted Trump as president? Hell no! lol But it’s the hand our country has been dealt. If anyone expects you to defend Trump for owning a Tesla, that other person is just trolling you.

                Tesla’s mission has not changed. It sounds like the real problem is that you did not feel that you got a good value from the Model S?

                If you are getting rid of the Model S, are you going to pick up a Bolt? Volt? i3? Or have you already switched? 🙂

              2. SparkEV says:

                You no longer support Musk in creating great electric cars? Nothing’s changed with Tesla’s mission. Whatever evil you think has happened to Tesla is all in your head. As I mentioned earlier, you’re letting your emotion trump (dump) your reason.

                By your logic, if Dump start to support sierra club and other left wing endeavors, are you going to drop them as well even if those organizations’ mission haven’t changed? If you’re intellectually consistent, you must resist Dump no matter how good the cause may be.

        2. WadeTyhon says:

          Awwww I’m sorry that the Model 3 just will not be pure enough to meet your needs. :,( Poor little guy…

          You can go hang out with all those people who said ‘Dont buy from the Legacy Automakers!!! They want to weaken CAFE!!! Make a statement!!! Buy Tesla!!!’ and ‘MaRRY Bera iS oN TrUMp CouNCL SaY “NO” Vote wITh Ur WallET!!!’

          I assume every one of them will be as knee jerky on this as they were on the Automakers Alliance. I doubt they, or you, ever intended to buy an EV anyways so really it is no loss lol

          To everyone else, vote with your wallet in a meaningful way. Buy ANY EV, from Tesla, GM, BMW or any other manufacturer that will suit your needs! 😀

    2. Koenigsegg says:

      Once you go Tesla, you don’t go back.

      Also you’re a p*ssy if you aren’t going to support Tesla because Elon is working with our President. Makes zero sense whatsoever.

      Do us a favor and leave. Thanks

  4. ¯\_(ツ)_/¯ sven says:

    “There is no way to quantify the value (if any) of Tesla management’s advisory relationship with the new administration.”

    Maybe it can by quantified by the number of supporters and Twitter followers that Musk has lost.

    http://finance.yahoo.com/news/elon-musk-trump-outreach-angering-211607784.html

    1. Pushmi-Pullyu says:

      “Tesla management’s advisory relationship with the new administration.”

      You mean, SpaceX management’s advisory relationship with the new administration.

      SpaceX is utterly dependent on every U.S. administration for funding. Not only is the U.S. government the #1 customer of SpaceX; SpaceX also depends on government funding for further development of its launch systems, which hopefully will soon include a manned launch system for NASA. Furthermore, presidential administrations have a lot of influence over how much funding goes to space missions and launches.

      Tesla Motors may or may not be able to get along without Elon “playing nice” with the Turmpsters. SpaceX has no such freedom.

  5. Ct200h says:

    I can’t wait to buy my first made in the USA electric car.
    I think it’s great Musk is working with the new administration in an advisory position, he’s running 2 huge manufacturing companies , why wouldn’t you want him involved.
    Go Tesla , go SpaceX go USA .

    1. Mister G says:

      Very well said. And I voted for Hillary.

  6. John says:

    For all those that are now down on Elon for working with Trump, instead of looking at it that Elon is selling out by working with Trump, maybe it’s the opposite- we have a pro EV/solar/alternative energy/space guy who is close to the president representing all of us and giving Trump a sanity check. Sheesh! I think it’s great that the Trump recognizes that giving a voice to the smartest guy in the room might actually be an intelligent thing to do.

    For all those jumping off the Tesla bandwagon I thank you- I’ll be able to get my Model 3 that much quicker!!

  7. Someone out there says:

    Anyone boycotting Tesla because Musk’s involvement with Trump is an idiot, it’s really that simple.
    Donald Trump is the president of the USA. He won that position fair and square in a democratic election. That is the reality you have to accept.

    The next question then becomes “how do we go from here?”. How do we make the most of this reality? Obviously it is far more advantageous to be part of this manufacturing council that being on the outside. As an insider Musk has the ability to steer the committee in a good direction. Musk being part of this committee is better than Musk NOT being part of it.

    You can’t have everything you want but you can do your best with what you’ve got.

  8. ¯\_(ツ)_/¯sven says:

    Tesla will last 5 years