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Tesla, Norsk Hydro Touted at Morgan Stanley on Battery Strength

'The global battery industry sits at the nexus of equity sectors, ESG , commodities and public policy,' Morgan Stanley says.
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Morgan Stanley is bullish on the global battery ecosystem and cites stocks that will benefit, including Tesla  (TSLA) - Get Tesla Inc Report, Norsk Hydro  (NHYDY) , Panasonic  (PCRFY)  and QuantumScape  (QS) - Get QuantumScape Corporation Class A Report.

Batteries represent the “new oil,” Morgan Stanley analysts wrote in a commentary cited by CNBC. “A true ‘cross asset’ space, the battery ecosystem is far-reaching as a reflection of its transformative potential.

“Beyond its direct application to electric vehicles and [energy storage systems], the global battery industry sits at the nexus of equity sectors, [environment, social, governance], commodities and public policy.

“These drivers contribute to an industrial ‘flywheel’ that accelerates capital formation, lowers costs, and, ultimately, provides a path to commercial scale….

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“The emerging battery economy is a story of battery electric vehicles becoming vastly superior in cost and capability to internal combustion engine cars,” the firm said.

Other stocks on the Morgan Stanley battery list include Albemarle  (ALB) - Get Albemarle Corporation Report, Glencore  (GLCNF) , Komatsu  (KMTUF)  and Analog Devices  (ADI) - Get Analog Devices, Inc. Report.

When it comes to Tesla  (TSLA) - Get Tesla Inc Report, market-prominent money manager Cathie Wood, head of Ark Investments is one of Wall Street’s biggest bulls for the dominant U.S. electric car maker.

if it’s “the first to be successful in autonomous [vehicles] in the U.S., we’re beginning to believe that not only will Tesla take that biggest share of the electric vehicle market, we believe that it could take 20% to 25% share of the total auto market in five years,” Wood said.

She predicts the stock will hit $3,000 in 2025. Tesla shares recently traded at $1,102, up 1%.