According to the well-known investment bank Morgan Stanley analyst Adam Jonas released a report on Tuesday that in the supply of key raw materials, Tesla is five to ten years ahead of other competitors.
Jonas said the supply chain issues highlighted by the recent nickel price volatility showed that the supply chain for electric vehicles was “unsustainable on many levels”. He highlighted the high selling price of nickel metal (over $30,000 per ton) and the environmental cost.
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Moreover, “Indonesia’s Sumatra coal-fired smelting business relies on deforestation/open pit mining to process secondary nickel into primary nickel. We were told that one would have to drive an electric car for almost two full years to offset the carbon emissions,” he said.
He noted, however, that Tesla is “five to 10 years ahead of other industry companies on these issues and more.” “The winners in the global electric vehicle market will be those that can secure the supply of critical raw materials. The stock market tells you that Tesla is way ahead,” Jonas wrote. Tesla shares closed at $1,099.57 on Tuesday, giving it a market value of $1.14 trillion.
In addition, he also said that by 2023, Tesla could spend between $200 billion and $250 billion in capital expenditures and research and development, which is almost the entire market value of Toyota. Toyota is the second-largest automaker, trailing Tesla in market value.
