Market Overview

Morgan Stanley Analyst Provides Insight Into Tesla's Future

Related TSLA
Weekly Tech Highlights: New iPhone Leaked, Tesla's Mobile Store And More
Tesla Fails Again To Alter Texas Dealership Law
Why Self-Driving Cars Are No Threat To Tesla, Apple Or The Auto Industry (Seeking Alpha)

In a research note released Tuesday, Morgan Stanley's Adam Jonas provided insight into what the future may hold for Tesla Motors (NASDAQ: TSLA). In his note, Jones maintained Tesla's Overweight rating and $320 price target but stated, "If Tesla can achieve battery cost per kWH below $150 and defend the intellectual property, there is significant potential for revenue streams not captured in our $320 price target."

Recently, Tesla released information about its much anticipated, 5 billion dollar gigafactory. In response to this, Jones noted three main points that could affect the company's future share price.

  1. Tesla's 2020 vehicle production target of 500k is 35% higher than our 371k unit forecast.
  2. Tesla's projected 50 GWh of annual battery production (pack level) from its Gigafactory by 2020 is more than double our forecasts.
  3. Tesla's target for >30% reduction in cost per KWh appears vs. a base of around $200/KWh planned by first Gen 3 production in 2017, implying costs <$150/KWh once ramped up.


Jones believes the market is "still in the early stages of reassessing Tesla's potential addressable market". Jones also noted that the success of Tesla's gigafactory could lead to the development of "an entirely new industry," which could possibly break into a $1.5 trillion global electricity market.

Latest Ratings for TSLA

May 2015JefferiesInitiates Coverage onBuy
Apr 2015JP MorganMaintainsUnderweight
Mar 2015Argus ResearchInitiates Coverage onHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Adam Jonas Morgan StanleyAnalyst Color News Price Target Analyst Ratings


Related Articles (TSLA)

Around the Web, We're Loving...