Tesla could be a ‘winner in the heat pump industry’ - Morgan Stanley
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Morgan Stanley analyst Adam Jonas sees heating as a significant potential opportunity for Tesla (NASDAQ:TSLA).
He noted that the idea of a âTesla heat pumpâ has been the subject of speculation following the companyâs investor day earlier in March. CEO Elon Musk had indicated during the event that the Austin-based automaker âmight make a heat pump for a home at some pointâ in the future. Via this pump, the company could help replacing furnaces with heat pumps in homes and businesses, with industrial use cases as well, in Jonasâ view.
He noted that existing business in Powerwall and SolarCity mean the company already has a foot in the door into home energy provision. Additionally, Jonas âstrong electric and thermal management capabilities from their vehicles and battery manufacturingâ could aid the company should it indeed pursue heat pump production. In his view, home heating could be a âlogical extension of Tesla's existing energy ecosystemâ in the future.
âTesla has a track record of entering industries where they believe they can leverage their competitive advantages to create a better and/or cheaper product for consumers (Tesla insurance, batteries),â Jonas told clients. âIn our view, Tesla brings two qualities to the table that could potentially help them be a winner in the heat pump industry.â
Tesla (TSLA) shares slipped 1.6% in premarket trading on Wednesday, giving up some gains from an over 5% jump on Tuesday. 
Read more on Morgan Stanleyâs client survey regarding EV stocks in 2023.