Nomura: Tesla's solar energy manufacturing layout has strategic significance, with a target price of $415.

Morgan Stanley published a research report pointing out that Tesla's allocation of capital to solar manufacturing is based on long-term strategic considerations regarding geopolitical changes and the demand for data centers. Morgan Stanley believes that Tesla's plan to vertically integrate solar manufacturing reflects Elon Musk's goal of sending a large number of solar-powered data centers into space, while also driving synergies with its leading energy storage business. According to Morgan Stanley's preliminary estimates, when Tesla's solar business is fully operational, it could add $20 billion to $50 billion in equity value to its energy business, which is currently valued at $140 billion. Although the impact on Tesla's overall valuation may not be significant when viewed in isolation, Morgan Stanley believes that the decision to allocate capital to expanding solar capacity is rational and can create value and growth opportunities through the establishment of vertically integrated solar and energy storage businesses. Without this investment, Tesla may face significant bottlenecks related to energy, limiting its ability to achieve broader business goals. Morgan Stanley rates Tesla as "Equal Weight" with a price target of $415.