EV price cuts ‘not a fad, but a trend,’ says Morgan Stanley

Morgan Stanley analyst Adam Jonas sees Tesla’s (TSLA) price cuts as "rational competitive behavior" given that the company has scale and cost leadership in the global EV market and wants to establish industry standards for industrialization of EV manufacturing and infrastructure at higher scale. The firm, which believes "EV price cuts are not a fad, but a trend," thinks investors should anticipate further price cuts in electric vehicles, with "cost-leader Tesla setting the tone." Morgan Stanley keeps an Overweight rating and $220 price target on Tesla shares.