The risk of Tesla shares is not owning them

Racing ahead: A Tesla charges at a station in Kansas. The Elon Musk-led company, which is the current global market leader in electric vehicles, has reported strong delivery numbers for the first quarter, even as carmakers struggle with a chip shortage. ─ AP

NEW YORK: Tesla Inc can disproportionately benefit from the United States infrastructure package, and investors in the auto sector risk losing out if they don’t own the stock, Morgan Stanley said.

The Biden administration proposes allocating US$174bil (RM719bil) to develop the country’s electric-vehicle (EV) ecosystem, which could enhance Tesla’s advantage over legacy car companies and even some new entrants, analyst Adam Jonas wrote in a note.