AAA puts the national diesel average at a record $6.06 per gallon, up about 63% from $3.71 a year ago.
Tesla Inc.
Morgan Stanley Sees $17 Billion Software Business
Percoco put diesel front and center in his Friday note: "$6 Diesel...Enter Tesla Semi."
Morgan Stanley estimates Tesla could have 82,000 Semis on the road by 2040, generating roughly $17 billion in software revenue and $7.5 billion in earnings before interest and taxes.
Tesla could charge $12,000 to $18,000 per month for autonomous software on each truck, or about $0.85 to $1 per mile.
That opportunity adds $20 per share to Morgan Stanley's Tesla bull case, equivalent to roughly $80 billion in market value. Percoco raised his bull-case target to $840, while keeping an Equal-Weight rating and $400 base-case target.
Tesla is trading at $366 at time of writing.
$6 Diesel Changes the Math
Morgan Stanley estimates autonomous trucks could cut fleet costs by roughly 20%, largely through lower labor, fuel and insurance expenses.
