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Tesla’s services business could be worth more than all of its car sales by the end of the next decade, Morgan Stanley said.
The bank estimates autopilot, insurance, energy, and everything else to be worth about 53% of a new street-high target price of $540 by 2030.
Investors should also consider comparing the company to other services companies, like Apple, Tinder, Roku, and video game makers, the analysts said.
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Wall Street analysts have long compared Tesla to Apple and other tech giants more easily than its Detroit competitors.Now, Morgan Stanley’s Adam Jonas has taken one of the strongest steps yet to do just that — and is including an array of companies including Tinder, Roku, and video game makers too.For the first time this week, the bank included Tesla’s ancillary services — like its autopilot software, home energy products, insurance, and the long-awaited Tesla network — in its valuation of the company, which now sits at a street high of $540.”To only value Tesla on car sales alone ignores the multiple businesses embedded within the company, and ignores the long term value creation arising from monetizing Tesla’s core strengths, driven by best-in-class software and ancillary services,” Jonas …
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