Morgan Stanley analyst Adam Jonas said labor costs for Tesla in China could be one-tenth of what they are for the company in California and he feels that many investors do not fully appreciate that Tesla is about to address both the largest electric vehicle and luxury car markets in the world, both of which are in China, "at scale and at a more advantageous cost basis." At the midpoint of his estimates, Jonas sees the potential for low to mid-30% auto gross margins in China for Tesla, he tells investors. He believes that Tesla vehicles could theoretically add about $4.00 to his estimates for 2022 EPS, or roughly $60 to Tesla shares at a 15 times P/E multiple, Jonas added. The analyst, who thinks the Shanghai Gigafactory has potential to be one of the more profitable auto factories in the world, keeps an Equal Weight rating and $250 price target on Tesla shares.

Says it may still take three years for automaker to integrate Tesla AI technology into its model

Elon Musk says: "Regarding FSD Version 12, which is the pure AI-based self-driving, if you haven't experienced this, I strongly urge you to try it out, it's profound. And the rate of improvement is rapid. And we've now turned that on for all cars with the cameras and inference computer everything from Hardware 3 on in North America. So it's been pushed out to, I think, around 1.8 million vehicles, and we're seeing about half of people use it so far and that percentage is increasing with each passing week."

Check out this evening's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EARNINGSAudioEye (AEYE) up... To see the rest of the story go to thefly.com. See Story Here

Tesla (TSLA) is expected to report results on its fiscal first quarter on Tuesday, April 23, with a conference call scheduled for 5:30 pm EDT. What to watch... To see the rest of the story go to thefly.com. See Story Here

Wells Fargo lowered the firm's price target on On Semiconductor (ON) to $95 from $110 and keeps an Overweight rating on the shares ahead of quarterly results. The firm anticipates On to deliver a Q2 guide slightly below expectations as it adjusts to Tesla-specific (TSLA) production softness specific to image sensor and SiC sales.