Investment banks usually get a reduction of 1% to 3% of the value of the merger deal, which is divided among all participating banks. Based on the purchase price of $44 billion, this comes to a range of $440 million to $1.3 billion.
So Morgan Stanley could be looking for tens – or even hundreds – of millions of dollars in advising Musk, as well as bragging rights on Wall Street.
The bank has not commented on the company’s work for Musk or Tesla.
Morgan Stanley auto analyst Adam Jonas is one of the biggest Tesla bulls on Wall Street. Jonas currently has a “buy” rating on Tesla stock and a price target of $1,300, which is 30% higher than the current share price of nearly $1,000 per share.
Anything the investment bank does to get ahead to stay in Musk’s blessing can be helpful, especially if the world’s richest person is seeking advice on further Tesla mergers, SpaceX’s IPO, The Boring Company, or any other whim that requires him to raise money. More cash strikes his imagination.
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