By Sam Boughedda
Investing.com — In a note to clients on Thursday, Morgan Stanley said they expect "Tesla Inc (NASDAQ:TSLA) revenues to be larger than General Motors (NYSE:GM) + Ford (NYSE:F) (combined) by 2027.
The lead analyst on the paper, Adam Jonas, a long-time Tesla bull, has an Overweight rating on the stock and a $1,300 price target.
The analyst said Tesla's market share will average 3.5% for the full year after its January auto sales showed its market share was 4% on sales. As a result, the analyst believes the electric vehicle leader's US market share should "reach 10% by 2025 and 23% by 2030."
"We estimate Tesla can gain well over 1,000 basis points of share by end of decade, implying some significant share donors along the way," stated Jonas.
"We forecast Tesla's share of US new car auto wallet may surpass GM and Ford by the end of this decade," he added.
The analyst concluded that GM and Ford can remain viable, if not important, in a future electric mobility ecosystem long term, but that both companies will need to make significant changes to their business model. However, he conceded that the road ahead for Tesla will not be easy as the competitive landscape will continue to shift as new entrants gain market share.
Tesla shares are up .8% Thursday. Tesla's automotive revenues in 2021 were $47.2B, vs. $113.6B in auto revenues for GM and $82.7B for Ford in the first 9 months of 2021. GM has traded about 2% lower since reporting earnings this Tuesday, while Ford reports after the bell today. Tesla reported last week and is also down a little more than 2% from its pre-earning levels.