Morgan Stanley’s (MS) analysts Adam Jonas, who leads the firm’s auto research team, feels extremely bullish about Tesla Motors (TSLA) and its share price.
In a video posted for clients on Thursday, Jonas offered his view of why the electric car maker “may be the world’s most important car company”, and that the name’s stock price can realistically multiply by ten:
[via BI] “This is a hyper-ambitious company, and the only one we cover whose stock price can realistically multiply by ten. It can also get cut in half. But we think patient investors will be rewarded if they can hang on for a wild ride.”By Jona’s estimates, we could see Tesla’s price-per-share and market cap hit $1,900 and $240 billion, respectively. The stock is at $190 right now, with a market value of about $24 billion.
The video, which predicts that Tesla is good enough to become one of the top 15 U.S. companies – placing it above the likes of Facebook Inc (FB), Chevron (CVX) and Coke (KO), also notes the company’s emergence as a big lithium-ion battery manufacturer. Analysts predict that Tesla will be 5x bigger than the next biggest rivals. Another point, among many, the video argues is that Tesla’s direct sales model business will continue to revolutionize the car industry.
The video however, doesn’t seem to help TSLA today. Tesla shares closed nearly 2 percent lower on Thursday, and are edging lower in pre-market hours trading at $190 and change.
emphasis added
No, $1900 is just as crazy as $65 if not crazier. Costs for this company are sky high because it is innovative, substitute goods are less expensive because of low interest rates, oil and gas are dirt cheap, dollar is high making Tesla’s exports less lucrative, Tesla’s brand is constantly under attack from competitors, and most importantly the public does not trust their Musk. I think $160 is a good short-term target if you are to short. 2015Q1 deliveries target and revenue was set low for an easy beat. 2Q2015 maybe $245 (June-Aug)?