MS' main thesis is a gradual transition to what it terms "Tesla Mobility, an app-based, on-demand mobility service."

From the article:

Tesla is uniquely positioned, in our view, to solve the biggest flaw in the auto industry, <4% utilization, via an app-based, on-demand mobility service.

Because:

'We view this business opportunity as potentially additive to Tesla's existing model of selling human-driven cars to private owners'

The article does not make very clear why Tesla would be in a better position then for example Apple, Google, Uber, Mercedes, BWM, etc, etc.

Some important things are mentioned. But I am not sure if they really excel in most of them.

Maybe MS wants the stock price up before Apple buys Tesla...