Price target: $305 by Q4 2017.
Shares are up ~4% in pre-market on this news.
Morgan Stanley is the first investment bank to upgrade Tesla this year. I expect many banks to do the same as the Model 3 is launching by H2 2017.
Of course, there is the possibility that Tesla may delay the release of the Model 3, which may prevent it from reaching Morgan Stanley's current Q4 target price of $305.
However, I doubt that the Model 3 will be delayed any further than Q1 2018, and that is a conservative estimate. I really do think Tesla will get its act together and deliver the Model 3 on time (with a 5% margin of error which translates to +/- a few weeks).
In the extra long-term, I expect Tesla to reach $500+. It is a "bubble stock", and just like how investors played Amazon back a few years ago, I expect the same thing to happen to Tesla.
Tesla may look overpriced, but it's more than just an auto company. It is an energy solutions company that is transforming both the auto and energy industries all in one-shot. It's very different from investing in traditional auto companies like GM, which offer good value, a dividend but much lower potential growth.
GM may be rolling out electric cars, but it is years behind Tesla in terms of charging networks and AI. And before you say that other automakers are on-track to manufacture self-driving cars for cheaper with the same quality, remember Tesla is not just an auto company, it is a energy solutions company that is propagating the next revolution in TWO industries, not just one.
Submitted January 19, 2017 at 08:16AM by ILoveSushi1337 http://ift.tt/2k6YCOO
