Morgan Stanley: Tesla's Solar Expansion Could Add $50 Billion in Value

Morgan Stanley analysts project that Tesla's energy segment valuation could surge to $190 billion following a massive expansion in U.S.-based solar manufacturing. The proposed plan aims to establish a domestic solar cell production capacity of 100 gigawatts (GW) annually. According to the report, this strategic move could potentially add between $20 billion and $50 billion to the company's overall market value. However, achieving complete vertical integration across the solar supply chain will require substantial capital expenditure, estimated between $30 billion and $70 billion. This initiative is designed to reduce Tesla's reliance on Chinese solar components while strengthening its position in the renewable energy market. Analysts view this as a significant long-term growth catalyst that diversifies revenue streams beyond the core electric vehicle business.