Tesla "Iron Fans" Morgan Stanley: Naming Xiaomi, China is already leading, is Tesla deliberately downplaying electric vehicles? The competition in autonomous driving has just begun

Morgan Stanley's "iron fans" have recently observed two major phenomena: Tesla's stock price continues to decline, and it seems to be downplaying its core electric vehicle business? Core automakers like Xiaomi and BYD appear to be venturing into emerging fields such as humanoid robots.

In this regard, Morgan Stanley pointed out in its research report on March 26 that Tesla's downplaying of its electric vehicle business indicates that its future focus will not be on new energy vehicles, but rather on artificial intelligence, including autonomous driving, which has significant growth and profit potential.

At the same time, Morgan Stanley specifically mentioned Xiaomi, stating that Xiaomi's first car, the SU7, continues to win favor among global consumers and recognition from automotive executives.

From Xiaomi's rapid development, Morgan Stanley expects that Chinese automotive companies will eventually enter the U.S. market, possibly by establishing factories in the U.S., which means that competition in the U.S. electric vehicle market will become even more intense.

According to Morgan Stanley's estimates, Tesla's market value will exceed $1 trillion by 2025. Based on yesterday's closing price of $272, the current market value is approximately $852.5 billion.

The Competition in Autonomous Driving Has Just Begun

Recently, Tesla seems to be downplaying its core electric vehicle business, and Morgan Stanley believes that the reason behind this shift is that Tesla is redirecting its strategic focus to AI-related fields.

Morgan Stanley believes that Tesla's core advantage lies in its strength in "physical artificial intelligence," which includes capabilities in data, robotics, energy storage, computing, manufacturing, as well as space/communication/network/infrastructure. The technological accumulation and innovation capabilities in these areas lay a solid foundation for Tesla's future development.

Furthermore, the growth and profit opportunities provided by this field far exceed those of the traditional electric vehicle business, which is currently under pressure. This is precisely why leading Chinese electric vehicle manufacturers like Xiaomi, BYD, and XPeng are also venturing into the humanoid robot field. Morgan Stanley analysts believe that China has already taken the lead in the electric vehicle sector, but the winner of the autonomous driving race has yet to be determined.

Specifically regarding autonomous driving technology, Morgan Stanley mentioned:

Tesla's future Cybercab will not be equipped with a steering wheel and will achieve fully autonomous driving. At the same time, Tesla insists on not using LIDAR for autonomous driving, focusing instead on achieving autonomous driving through pure visual solutions, which contrasts sharply with many other companies