Tesla software and content to become increasingly important, says Morgan Stanley

Morgan Stanley keeps an Overweight rating and $380 price target on Tesla. The company is one of the world’s most vertically integrated manufacturers, and while its total addressable market today is totally dominated by the one-time/point-of-sale auto business, the firm’s positive view on the stock is Tesla’s ability to move the needle incrementally towards more capital light models and incrementally away from the auto business, the analyst tells investors in a research note. Autos will be the majority of Tesla’s revenues for the next decade, but software, content, and licensing opportunities will become increasingly important to the model as well as expansion into markets beyond the point of sale of vehicles, the firm states.