Tesla's DNA Of Tackling Thorny Engineering Makes Flying Cars The Next Logical Moonshot: Morgan Stanley Analyst Doesn't Buy Musk's 'Stretched Thin' Argument Entirely

Morgan Stanley auto analyst Adam Jonas says Tesla Inc. TSLA could one day steer its engineers toward electric flying cars, arguing CEO Elon Musk may be tempted to solve the big remaining obstacles to commercial air taxis, or electric vertical take-off and landing craft (eVTOLs).

What Happened: In a recent research note, first reported by Teslarati, Jonas highlighted Musk's recent response to a question about building an electric plane, to which the Tesla CEO said the company is "stretched pretty thin."

Jones called it "a decidedly different type of answer" to the actual question, but asked, "Is Tesla an aviation/defense-tech company in auto/consumer clothing?"

Jonas, in a separate note shared last month covered by Barchart, argues that aviation could diversify Tesla as Chinese carmakers close the gap in electric vehicles. He warned that "China may have already won the EV battle," a shift he says explains why Tesla is "going all-in on autonomy."

Why It Matters: The analyst's optimism contrasts with the industry's slow progress. Archer Aviation's ACHR Midnight prototype completed its first piloted flight in Abu Dhabi last week, yet regulators have not cleared any firm for passenger service. According to Reuters, German rivals Lilium and Volocopter, once poster children for the sector, are fighting cash shortfalls and slumping investment.

Washington sees strategic stakes, too. "eVOTLs [sic] are going to fundamentally transform how the public travels. Let's make sure the U.S. leads the way," Transportation Secretary Sean Duffy posted Monday.

Tesla, for its part, has never committed to an aircraft program, though Musk once mused that a next-generation Roadster "will be able to fly."

Price Action: Tesla stock closed 0.46% up at $344.27 on Tuesday, compared to a 52-week trading range of $167.42 to $488.54. However, it is down 9.23% year-to-date in 2025.

Benzinga Edge Stock Rankings indicate Tesla scores well on Momentum, Growth, and Quality metrics. Check here to see how it does on the Value front.