- Morgan Stanley (NYSE:MS) takes a deep dive into the impact Tesla (TSLA +1.4%) could have in trucking with its upcoming EV truck announcement.
- The firm thinks Tesla will announce partners at the event, which could include large truck carriers and shippers. Schneider National (NYSE:SNDR), Ryder (NYSE:R), FedEx (NYSE:FDX), XPO Logistics (NYSEMKT:XPO) and US Xpress are all mentioned by MS as potential test partners.
- Based on its history, Morgan Stanley thinks Tesla could start taking orders immediately after the event with a $5K deposit.
- Sector look from analysts Ravi Shanker and Adam Jonas: "A rush by truck carriers to place Tesla truck orders and other OEMs to launch similar trucks could also be viewed by the market/investors as a key catalyst to the intelligent trucking thesis becoming real. We believe being announced as an early launch partner is likely to drive a multiple re-rating – SNDR, XPO, ODFL and WERN are our top trucking picks."
- Other freight transportation companies to watch: ARCB, CHRW, ECHO, UPS, SWFT, LSTR, JBHT, KNX, HTLD.
- As for Tesla, Morgan Stanley has a bull case price target of $526, a bear case price target of $175 and a base case PT of $317.
Original article