Yesterday, despite the updraft in the broader market, TSLA was down $2.67 to $191.07.
In early pre-market the stock is down another $3.07 to $188.00.
From MoneyBeat:
World domination.
That’s essentially how Morgan Stanley analysts sum up Tesla Motors Inc.'s potential future within the auto industry. In a roughly four-minute video released to Morgan Stanley clients Thursday, the investment bank says the stock price “can realistically multiply by ten.” Though it warns it could also be cut in half.
The electric car company’s big-data approach, customer-focused business model and multi-faceted CEO, Elon Musk, are among reasons Morgan Stanley is so bullish on shares. The bank has an overweight rating on the stock with a price target of $280, almost $100 more than where the stock trades Thursday.
Morgan Stanley’s quirky video begins with an explanation of the uniqueness of Mr. Musk by listing his accomplishments and goals, noting that he’s launched rockets to the International Space Station, dreamed of colonizing Mars, commercialized solar energy, developed public transportation using reduced-pressurized tubes and, to make sure we got it, mentions again that he’s dreamed of colonizing Mars. On top of that, Mr. Musk spends a few days a week working from an Ikea desk on the Tesla factory floor, but clearly has grander visions as well.
Among the other things Morgan Stanley likes about the automaker is that it is research-heavy. The firm says 60% of Tesla employees are involved in software engineering, compared to 2% at a normal car company. That’s important because Morgan Stanley predicts the added value of software in vehicles will grow from 5% to 60% over the next decade....MORE
