Morgan Stanley has reportedly proposed that Tesla, a leader in electric vehicles, could extend its technological prowess into drone manufacturing, potentially reshaping both industries. While Tesla has not confirmed any plans to enter the drone sector, the investment bank believes the company’s innovations in battery and autonomy could position it as a key player in the electric vertical takeoff and landing (eVTOL) market, offering intriguing possibilities for EV enthusiasts.

Tesla’s EV Strengths as a Drone Advantage

Morgan Stanley’s analysis, published on June 4, 2025, highlights Tesla’s potential to tap into the $9 trillion eVTOL market by 2050, focusing on the “low altitude economy.” The bank points to Tesla’s expertise in electric vehicle technology, noting that the company has “a host of relevant skills to be a factor in the Low Altitude Economy from both a commercial and (potentially) non-commercial perspective.”

Tesla’s advancements in lithium-ion batteries, which power its vehicles to ranges exceeding 400 miles, could enable drones to achieve flight distances of up to 20 miles. Additionally, Tesla’s Full Self-Driving (FSD) autonomy could translate into drones with AI-driven navigation, capable of covering 5 square miles in a single flight for applications like disaster response.

National Security and EV Innovation Intersect

The proposal comes amid growing concerns over U.S. drone production, as outlined in an open letter to Elon Musk from DroneXL on May 31, 2025.

The letter stated, “Currently, no US drone maker, including SkydioHQ and Brinc Drones, would be able to fill the void,” referring to the potential gap left by Chinese drone maker DJI’s exclusion from the U.S. market.

Morgan Stanley sees Tesla as a solution, especially after a Ukrainian drone offensive on Russian air bases, which they called “a wake-up call for the strategic role of unmanned systems in the AI era.” The analysts warned, “All future wars will be fought with drones,” and noted, “China makes more drones in a day than the United States makes in a year.”

For EVXL readers, this intersection of national security and EV technology highlights how Tesla’s innovations could extend beyond roads into the skies.

What This Means for Tesla and EV Enthusiasts

Morgan Stanley estimates that if Tesla were to capture even a fraction of the eVTOL market, the impact on its valuation could be significant, projecting “preliminary outcomes in the order of $100 per Tesla share on the low-end to approximately $1,000 per Tesla share (or more) on the high end.

For EV enthusiasts, this speculative move could signal Tesla’s next frontier, blending its electric vehicle expertise with aviation. Imagine Tesla applying its battery management systems to power drones for urban air mobility or logistics—potentially reducing the carbon footprint of last-mile deliveries, a growing interest for eco-conscious EV owners.

Elon Musk himself emphasized the broader stakes during Tesla’s first-quarter earnings call in 2025, stating, “Any country that cannot manufacture its own drones is doomed to be the vassal state of any country that can. And we can’t—America cannot currently manufacture its own drones.”

EVXL’s Take: A Sky-High Opportunity

While Tesla has not announced plans to build drones as of yet, Morgan Stanley’s vision sparks excitement for EV fans. If Tesla can electrify the skies like it has our roads, we might see a future where your Model Y and a Tesla drone work together—maybe delivering your groceries while you charge up. For now, this remains a bold idea, but with Tesla’s track record, the sky might not be the limit—it could be the next destination.