- Morgan Stanley says flying cars from Tesla (NASDAQ:TSLA) is a question of when and not if.
- While acknowledging that Tesla management has not discussed the eVTOL/UAM (urban air mobility) market in detail, analyst Adam Jonas and team feel the chance that Tesla does not ultimately offer eVTOL/UAM products and services is remote. The firm notes that the potential skills transferability and network adjacencies are too strong to ignore.
- "We have run a range of scenarios flexing market share and EBITDA margin assumptions based on our global eVTOL/UAM model (a $9tn TAM by 2050… yes...2050). Discounted back to the present on a per-share basis, we’re coming up with potential preliminary outcomes on the order of $100 per Tesla share on the low-end to approximately $1,000 per Tesla share (or more) on the high end."
- Morgan Stanley is not factoring in the upside quite yet as it keeps its price target at $900 on the Overweight-rated electric vehicle stock.
- It is not the first Morgan Stanley has written up a speculative note on Tesla and the urban air mobility market, but is the most confident the firm has seemed on the investor upside.
- Shares of Tesla are up 0.15% premarket to $654.36.
- Earlier this week, Tesla attracted a higher price target from Goldman Sachs.