Tesla’s stock has been on a steady rise, gaining nearly 20 percent in the last month. Despite this success, analysts and investors are looking at new potential sectors that Tesla could disrupt in the future. One such sector is the eVTOL industry, as suggested by Morgan Stanley’s Adam Jonas in a recent note.
In a discussion about Tesla’s potential in the eVTOL industry, Jonas raised some interesting points about CEO Elon Musk’s response to the idea. Musk mentioned that Tesla is already stretched thin, but did not completely dismiss the idea of developing a plane. This led Jonas to question whether Tesla is more than just an automotive company, hinting at the possibility of the company venturing into aviation and defense technologies.
While Musk has been clear about focusing on vehicle autonomy, AI, and robotics, Jonas highlighted Tesla’s expertise in manufacturing, data collection, robotics, and infrastructure as key strengths that could help the US compete with Chinese companies in the tech industry. China has been making significant advancements in robotics, with recent demonstrations of robots competing in sports events like half marathons and combat sports. Jonas suggested that Tesla could lead a similar effort in the US with a concept like “Humanoid Ninja Warrior.”
Additionally, Tesla is gearing up to launch affordable electric vehicle models by the end of Q2. With the $7,500 tax credit likely to expire in 2024, Tesla faces pricing challenges in a market where Chinese companies offer aggressively priced models like the BYD Seagull for around $8,000. Jonas believes that if Tesla can bring pricing below $30,000, it could tap into a much broader market.
During the Q3 2024 Earnings Call, Musk hinted that $30,000 would be the target price for the affordable models with the tax credit. This pricing strategy could make Tesla more competitive in the electric vehicle market and attract a wider range of customers.
Overall, Tesla’s potential for disruption extends beyond the automotive industry, with opportunities in aviation, robotics, and affordable electric vehicles. As the company continues to innovate and expand its reach, it will be interesting to see how Tesla shapes the future of transportation and technology.