Morgan Stanley: Tesla, Inc. (TSLA.US) "flywheel effect" is about to start. Driverless rental cars will be the next core growth point.

Morgan Stanley's research report states that if Tesla, Inc. (TSLA.US) successfully launches its self-driving taxi business, it will be an important growth catalyst that the market has underestimated. Analyst Andrew Percoco says the firm is optimistic about Tesla, Inc.'s production of self-driving taxis and Cybercab self-driving models, believing that this business has the potential to create a strong "flywheel effect" within Tesla, Inc.'s ecosystem. Percoco points out, "Each additional mile driven autonomously by a self-driving taxi will continuously optimize its underlying autonomous driving model, accelerating the achievement of fully autonomous driving for personal vehicles. This advancement will drive up the penetration rate of the FSD package, boost car demand, and enhance cash flow generation. In the current environment of rising capital expenditures and short-term cash outflows, the breakthrough in personal FSD technology will be a key lever to revitalize car sales and profit margins, providing funding support for Tesla, Inc.'s long-term layout in the field of physical artificial intelligence." Although Tesla, Inc.'s progress in Austin is deliberately cautious, this will help the company polish its promotion strategy and lay the foundation for rapid scaling in the seven additional cities planned for the first half of this year. Tesla, Inc. expects that the transition from human supervised to fully autonomous driving will be significantly shortened once the Shenzhen New Land Tool Planning & Architectural Design is launched. Morgan Stanley's analyst team believes that Tesla, Inc.'s self-driving taxis have a structural advantage in cost structure due to vertical integration of vehicle manufacturing and fleet operation (including services, maintenance, charging, insurance, etc.). Percoco emphasizes, "Taking the Model Y as an example, we estimate its comprehensive cost to be around $0.81 per mile (excluding tolls), while the ride-hailing industry is around $1.71 per mile, and Waymo is around $1.43 per mile. With the mass production of the Cybercab self-driving model, it is expected that by 2035, the cost per mile will further decrease to $0.37."