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Tesla Defends Model X Door Issues

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Morgan Stanley issued some clarification on Tesla Motors Inc (NASDAQ: TSLA) Model X door concerns.

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:

  1. The Model X will have Falcon Wing doors.
  2. The doors 'weren't the challenge.' They are relatively easy to execute compared to other technical accomplishments at the company.
  3. 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

DateFirmActionFromTo
Oct 2017Evercore ISI GroupDowngradesOutperformIn-Line
Oct 2017Morgan StanleyMaintainsEqual-WeightEqual-Weight
Oct 2017Standpoint ResearchDowngradesHoldSell

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