Tesla Defends Model X Door Issues
In the original note, Morgan Stanley analyst Adam Jonas mentioned "investors should allow a reasonable level of execution risk on the many unprecedented innovations brought to market on the Model X including never-been-done-before attributes like the double-hinged falcon doors."
Jonas goes on to say Wednesday that questions raised in the November 17 note are based entirely on the views and opinions of the Morgan Stanley Global Auto team.
Tesla provided further clarification on the topic with the following feedback:
- The Model X will have Falcon Wing doors.
- The doors 'weren't the challenge.' They are relatively easy to execute compared to other technical accomplishments at the company.
- Tesla has customers that want Falcon Wing doors. There has been no parallel development of conventional doors at Tesla.
Despite the issues with the doors, Morgan Stanley maintained its Overweight rating and $320 price target.
Latest Ratings for TSLA
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Underperform|
|Jun 2016||Argus Research||Downgrades||Buy||Hold|
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