Tesla in Ohio? Morgan Stanley thinks it's possible - MarketWatch

To date, there are no overt efforts or official comments around Tesla Inc. TSLA, -5.25% utilizing one of the soon-to-be idled General Motors Co. GM, -2.15% plants, but that hasn't stopped analysts at Morgan Stanley to sketch a case for it in a note Thursday. Tesla snapped its plant in Fremont, Calif., at a steep discount from a venture between GM and Toyota, they reminded investors. For Tesla to do similarly with the GM plant in Ohio, the Silicon Valley car maker would require it to be "a free or nearly free" deal, a labor contract that does not involve the union and collective bargaining agreement, and an extension of federal tax credits on electric vehicles or other incentives to encourage EV adoption, the Morgan Stanley analysts said. A deal would also come with "a substantial PR benefit from any successful deal that saves jobs," the analysts said. Tesla shares fell more than 3% in midday trading Thursday and have gained 3% this year, contrasting with losses around 7% for the S&P 500 index and the Dow Jones Industrial Average. DJIA, -1.90%

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