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Tesla is the most American car company, Morgan Stanley analyst proves in a new note to clients. The firm has an Overweight rating on Tesla shares and a $1,150 price target.

The “Inflation Reduction Act of 2022,” which is up for a vote in the US Senate this week, aims to spur the development of clean energy vehicles that are made in the US. In 2022, Tesla Model Y and Model 3 topped the Cars.com American-Made Index. In addition, Model X came in fifth while Model S took sixth, making Tesla the most American-made automaker. Morgan Stanley analyst Adam Jonas also described his case for Tesla being the most “American” car company in a note to clients, reported Benzinga.

In the report, the analyst points out that 62% of Teslas sold in the US are made in North America, based on fiscal-year 2021 model-year data from the American Automobile Labeling Act. In second place is Honda, with a share of 55%. Stellantis ranks third with a 46% share of vehicles made in North America for the US market.

In addition, Tesla dominates the market for electric vehicles manufactured in the US and Canada. Jonas noted that the company accounts for approximately two-thirds of the market share of all U.S. electric vehicles (including plug-in hybrids) since early 2022 and more than 90% of the share of battery electric vehicles. According to the analyst, Tesla has a minimum of 50% US and Canada manufacturing share.

“As Tesla continues to lead the industry in localizing battery/cell manufacturing in Texas and other US states (forthcoming) we would expect to see Tesla’s US share of production value further increase materially over time,” Jonas noted.

The analyst has an Overweight rating on Tesla shares and a $1,150 price target.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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