- Morgan Stanley sees Tesla Motors (TSLA -5.2%) at a crossroads as it faces a number of engineering challenges with the Model X.
- Extra work on the double-hinged falcon doors in particular is seen as a cash burner.
- MS on Tesla: "It is critical that Tesla be as transparent as possible with the manufacturing challenges that may be facing the Model X including vectors such as timing, cost and potential reengineering solutions if necessary."
- Another curiosity pointed out in the note from long-time bull Adam Jonas is the lack of any road test by an automobile magazine. The Model S dazzled in early tests to help lift share price.
- Tesla is still rated at Overweight with a $333 price target, but Jonas openly wonders if Tesla should be contracting out vehicle production.