Morgan Stanley still dreamy over Tesla Motors


As if Morgan Stanley hasn't done enough to kickstart enthusiasm over Tesla Motors (TSLA), analyst Adam Jonas is out with a new bullish report on the EV automaker.

Jonas says his price target of $320 is actually on the conservative side if Tesla can achieve battery cost per kWH of below $150.

The large scale of the planned Tesla gigafactory and lower battery costs is a recipe for exploding revenue, according to MS.

TSLA +2.4% premarket to $256.56.

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Comments (26)
  • Paulo Santos
    , contributor
    Comments (33956) | Send Message
     
    Perhaps the riskiest thing which can happen to TSLA, is for EVs to become obviously viable. As long as they aren't, competition is low.
    4 Mar 2014, 08:41 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6263) | Send Message
     
    it is ironic that success could translate into failure, If the EV revolution does actually take off, Paulo is right. This will draw so much competition into the mix, that although the pie will be much larger, TSLA's % of the pie will shrink exponentially.
    4 Mar 2014, 08:51 AM Reply Like
  • fact_checker
    , contributor
    Comments (106) | Send Message
     
    It is amazing to see how quickly minds are changing. A couple years back, very few people even new what an EV was. Now people are starting to think it is inevitable and just betting over which manufacturer will win. Interesting times!
    4 Mar 2014, 08:52 AM Reply Like
  • Esekla
    , contributor
    Comments (4477) | Send Message
     
    I disagree. Musk has said all along that they want to "popularize" EVs, and that they welcome competition, not that they want to dominate the space. See

     

    http://seekingalpha.co...

     

    If EVs are broadly viable and Tesla is a key technology provider, their success is assured. It's a big IF, but bears are going to have a hard time showing that it absolutely can't happen over the next two years, and as long as that's the case the stock will continue to trade as described here:

     

    http://seekingalpha.co...
    4 Mar 2014, 08:52 AM Reply Like
  • Monja
    , contributor
    Comments (66) | Send Message
     
    Nobody can match Tesla within the next few years without infringing their IP and investing massive amounts of capital, not to mention rolling out a whole other Supercharger-like network or licensing Tesla's. Anyway if EVs take off in any big way then the market will be big enough for at least 2-3 huge players.
    4 Mar 2014, 08:59 AM Reply Like
  • MovingMagic
    , contributor
    Comments (111) | Send Message
     
    What then do you think the rationale is behind Elon Musk stated goal of having more competition. The company's founding principle is to speed the transition to sustainable energy production and consumption and Elon Musk would applaude competition very much.
    But Elon Musk likes to plan ahead in time. Under his famous shower sessions he must have thought already of the consequences of OVERWHELMING COMPETITION. I trust we will be surprised by Elon and the future of the combination of his enterprises. We cannot imagine those yet. But it's fun to speculate :-)
    4 Mar 2014, 09:14 AM Reply Like
  • 123man
    , contributor
    Comments (1612) | Send Message
     
    The problem is the majors are facing a choice - deny EV's and Tesla continues to lead and innovate - embrace EV's and destroy some of the market they now have and their dealerships which depend on undependable ICE cars for revenue, a pretty uncomfortable place to be boxed into - either way Tesla continues to move forward supported by an understanding of the above dynamic -
    4 Mar 2014, 09:41 AM Reply Like
  • Zongi
    , contributor
    Comments (19) | Send Message
     
    Just like the worst thing that happened to Apple was that smartphones became popular.
    4 Mar 2014, 11:14 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33956) | Send Message
     
    Atari? Commodore?
    4 Mar 2014, 11:19 AM Reply Like
  • joeinslw@gmail.com
    , contributor
    Comments (1071) | Send Message
     
    What most of you shorters don't understand is that Mr. Musk wants other companies to build EV, that's why he is leasing his technology to Toyota, and Daimler auto.
    He wants the whole World to build EV so we stop polluting the atmosphere, which is causing the bad weather we have experienced in the last several years.
    With that said Tesla will still be the leader because nobody has the head start that Tesla has, he caught them all asleep so it will be many years even if they can catch up at all.
    Recently I saw an article about GM and how and when they crushed the EV1's they built, the article said that when GM crushed those cars, they crushed themselves. How interesting !
    4 Mar 2014, 12:45 PM Reply Like
  • embryorambo
    , contributor
    Comments (281) | Send Message
     
    Especially if we start mining cobalt on intergalatic ore bodies
    4 Mar 2014, 03:58 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6263) | Send Message
     
    classic pump and dump scenario in effect.
    4 Mar 2014, 08:48 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6263) | Send Message
     
    short the pump-the stock will fall back to earth once the puppy love diminishes.
    4 Mar 2014, 08:52 AM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (4187) | Send Message
     
    I guess Morgan Stanley is handling the bond business and feels it needs a push. This is so obvious. Jonas hasn't mentioned that Panasonic hasn't signed up for this deal and its a show stopper if it doesn't.
    4 Mar 2014, 08:54 AM Reply Like
  • MovingMagic
    , contributor
    Comments (111) | Send Message
     
    In my opinion it would not at all be a showstopper if NO partner would materialize. Elon tried to partner before, during the development of the Roadster and that didn't work out because the potential partners told Elon that they could not meet his demands for superior technology. So Tesla developed their own technology with great success. Now for the battery business, Elon will be easily inspirational to many ambitious brilliant young minds to set out and build the worlds best battery, just as it went with the Tesla Model S. So maybe it would actually be a very positive for Tesla to go it alone. Same story with SpaceX. Elon tried buying Russian technology but instead went and developed his own. We might have a deja vu in the making with the new battery factory.
    4 Mar 2014, 09:21 AM Reply Like
  • Doc's Trading
    , contributor
    Comments (1847) | Send Message
     
    Major supply at 260. More than 85 million shares traded there. Stock, at best, needs much more consolidation.
    4 Mar 2014, 09:22 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (7521) | Send Message
     
    Can we now expect a new bullish TSLA note every week from Adam Jonas? Maybe Andrea James can kick in whenever he's on holiday.

     

    Seriously. nothing changed in terms of outlook, sales and battery price reduction targets (TSLA mentioned these ballpark figures publicly for weeks, if not months).
    4 Mar 2014, 09:34 AM Reply Like
  • Capital Gains Investing
    , contributor
    Comments (46) | Send Message
     
    Disclosure: I am short TESLA and my hedged put has lost me some cash.

     

    I completely agree. It is funny that every other week, the only way TESLA shares are being kept up is by releasing so called "good news." Even useless news that would not move any other stock still moves TESLA. On average two stories a week, either by company or analysts.

     

    When the news stops coming, I imagine the stock will loose momentum and combined with a sliver of bad news, it will come tumbling. If I had made my money with this stock, I just would get out and not want anything to do with it, or read anything on TSLA for next two years.

     

    Getting tired of a stock that builds price on castles in the air.
    4 Mar 2014, 10:56 AM Reply Like
  • Esekla
    , contributor
    Comments (4477) | Send Message
     
    I can empathize, but I doubt the news will stop coming for the foreseeable future. The latest is increasing sales in Europe & Asia:

     

    http://seekingalpha.co...
    4 Mar 2014, 11:02 AM Reply Like
  • Bouchart
    , contributor
    Comments (1105) | Send Message
     
    Is Morgan Stanley still predicting that Tesla will bring about utopia or have they backed down from that prediction?
    4 Mar 2014, 11:38 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33956) | Send Message
     
    For many, including at Morgan Stanley, it probably has brought utopia already.
    4 Mar 2014, 11:46 AM Reply Like
  • embryorambo
    , contributor
    Comments (281) | Send Message
     
    So now what are they going to do for the next 3yrs while the factory is being built and model S sales have slowed down? What other stories will they use to continue pumping this thing up?
    4 Mar 2014, 04:19 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33956) | Send Message
     
    The way the market is going, they could say they expect demand from Martians and the stock would rally on it.
    4 Mar 2014, 06:00 PM Reply Like
  • Placebo Investment Advice
    , contributor
    Comments (4020) | Send Message
     
    Another parallel with 1999--the emergence of analysts who gain financial celebrity by promoting bubble stocks with bold speculations far into the future.

     

    At this point in the Tesla bubble, the stock will rise 5% even if the Jonas Brothers schlock rock band utters a positive word about Tesla.
    4 Mar 2014, 02:07 PM Reply Like
  • Logical Thought
    , contributor
    Comments (5446) | Send Message
     
    Poor little Adam was obviously feeling neglected:
    http://read.bi/1cryTrb
    4 Mar 2014, 02:41 PM Reply Like
  • seeker34567
    , contributor
    Comments (205) | Send Message
     
    If Musk says his batteries will be 30% cheaper, he actually means 50%.
    5 Mar 2014, 12:45 AM Reply Like
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