Morgan Stanley: Tesla Is Now “Most Important Car Company In The World”

3 years ago by Eric Loveday 18

Tesla Model S

Tesla Model S

Tesla Model S

Tesla Model S

Morgan Stanley Research analyst Adam Jonas suggests that Tesla Motors is “arguably the most important car company in the world:”

“Not even two years after the delivery of the first Model S, Tesla Motors has transformed from fledgling start-up to arguably the most important car company in the world. We are not joking. Tesla is also emerging as an emblematic force in America’s effort to foster high tech manufacturing job growth.”

“A BMW engineer recently explained to us how Tesla’s presence has helped reinvigorate the spirit of automobile innovation that was beginning to run stale, further testifying that BMW will be a stronger company longer term because Tesla is around.”

Jonas adds that Tesla is having a positive impact on the US economy and claims that within 7 years, Tesla will employ 20,000 workers (up from 6,000 today) and indirectly support the creation of an additional 100,000 jobs.

It’s “GDP moving stuff,” claims Jonas.

Jonas’ price target for Tesla stock is now set at $320.  Jonas predicts Tesla will control ~1% of the global automotive market by 2028.

Source: LA Times

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18 responses to "Morgan Stanley: Tesla Is Now “Most Important Car Company In The World”"

  1. Chris O says:

    This what these Morgan Stanley analysts had to say about some automakers sudden double-down on hydrogen technology while de-emphasizing electric vehicles:

    “We see the FCV push as a diversionary tactic to slow down, if not completely reset, a regulatory framework scripted to support mass adoption of EVs that don’t appear ready for prime time”.

  2. sven says:

    “Jonas predicts Tesla will control ~1% of the global automotive market by 2028.”

    Really?

    ***mod edit*** 2028 is an ambitious target for us on an edit function ***mod edit***

    1. sven says:

      Really?

      Maybe by 2028 InsideEVs will have an edit function. 😀

      1. evnow says:

        Doubt it 😉

  3. Tesla makes it very hard to argue that EVs are not ready for prime time.

    Price is the last remaining barrier. The gigafactory, flexible manufacturing stations and smart, skillful execution appear poised to take that last hurdle down.

  4. Thomas J. Thias says:

    Heh, More quotes from the investment master, Adam Jonas. Quotes below are from:

    Morgan Stanley Research, North America,

    “[…]Tesla Motors Inc.
    EVs are Dead, Long Live
    TSLA![…]”

    Published: May 28th, 2014

    Authors:
    Adam Jonas, CFA
    Adam.Jonas@MorganStanley.com

    Ravi Shanker
    Ravi.Shanker@morganstanley.com

    Paresh Jain, CFA
    Paresh.Jain@morganstanley.com

    “[…]We are bullish on the internal combustion engine technology through the next decade. A combination of software, weight-reduction, mild-hybridization,
    high-speed transmissions, boosting (turbo) and injection systems show great progress in achieving CO2 and fuel economy improvement.

    Autonomous technology takes fuel efficiency to entirely new levels, ultimately making a
    100mpg ICE vehicle an attainable goal.[…]”

    (ED. WHAT!)

    “[…]Tesla’s true success is making compelling performance vehicles that just happen to be EVs. A true democratization of EVs? We don’t even expect the Gigafactory to turn that optionality into a reality any time
    soon.

    We’ll never know… but we believe if the Model S had 2x the battery range but was unexciting to drive, it would be far less successful than it is today.
    To be a winner, the Gen 3 must first and foremost be an absolute riot to drive. Electric range comes second.[…]”

    (ED. Er, Huh?)

    “[…]Tesla aside, the auto industry’s push into EVs has
    fallen far short of expectations.~[…]”

    (Ed. 500,000 Global Electric Fueled Vehicles Industry Vehicles sold in just the last 32 months since Nissan Leaf and Chevy volt EREV left limited beta sales, US, November, 2011!
    Close to amazing, I’d say!)

    Link Goes To Much Quoted Adam Jonas – Morgan Stanley’s “EVs Are Dead, Long Live
    TSLA! (PDF Format)-

    https://teslamondo.files.wordpress.com/2014/05/report.pdf

    Best-

    Thomas J. Thias

    517-749-0532

    Twitter.com/AmazingChevVolt

  5. kdawg says:

    Is the car in the pic, driving on the wrong side of the road?

    Sounds like Adam Jonas wets his finger and puts it in the air before he types something up. Typical click-bait BS.

    1. Jay Cole says:

      We came into possession of a lot of “just about to rain on the shoot” UK promo photos that are kind of different

      …so whenever we see the word “world” “UK” or “RHD” we like to burn through a few of them, (=

      1. kdawg says:

        Ah OK. Upon closer inspection, I see that is the back of the seat and not a driver’s head.

  6. Ocean Railroader says:

    In terms of EV’s Tesla is the most viable electric car in town in terms how you can use it. Elon Musk pretty much rewrote the rules on how EV’s behave with it.

    In that a few years ago I bought a book on how to build my own EV. I was planning on using the book to get ready for the end of oil. But I diced not to build my own EV in that I was not good working with cars.

    What the EV book said was that it’s a myth that most people need to want a EV that goes 400 miles on a charge and can charge up in ten minutes. That the low range 50 mile EV’s were fine that charged up over night.

    Of course three years after this book was made Tesla comes out with the model S with a 300 mile battery range and 20 minute super charging.

  7. Jouni Valkonen says:

    “Jonas predicts Tesla will control ~1% of the global automotive market by 2028.”

    This is just utter nonsense. Tesla will control about 1 % of the global automotive markets by 2020.

    And after that it does not make sense to make prediction, because long term predictions are nonsense. But it quite apparent that Tesla is on its way to become one of the largest global auto manufacturers.

    1. Jouni Valkonen says:

      + I would like to edit few grammatic typos!

      1. Jouni Valkonen says:

        and have notifications if someone responds to my posts.

      2. Lensman says:

        I think many of us do. I’m very good at spotting mistakes in others’ articles and posts. My own… not so much.

    2. I agree.

      Qualitative assessment is something that can done based on what Tesla has done so far.

      But quantitative predictions are not helpful, because they are WAGs, by definition. Just like we don’t have psychics winning the lottery.

      Tesla (and BMW and Nissan, to a lesser extent) are pushing the entire automotive world in a BIG way. And, yes the recent FCEV PR is yet another stunt, to try and deflect attention from Tesla.

    3. Mikael says:

      1% in 2020 is somewhere between 1 million and 1,5 million cars sold per year.

      Then they would need 2-3 Gigafactories working at 100% capacity + some more manufacturing plants.

      I would be extremely happy and impressed if they were at 0,3% and getting remotely close to the 500k cars per year that they hope to be able to do with the Gigafactory at the most.

  8. ffbj says:

    All those jobs added and not a single one a dealership job. Points to the added cost of such dealerships for very little benefit.

  9. Lensman says:

    Much as I love the idea of EVs ending the era of Big Oil, and eliminating vehicle exhaust pollution, I don’t think that even Tesla Motors’ Gen III car and the Gigafactory is going to be the turning point for mass adoption of EVs.

    The Gen III car is projected to cost around $30k-35k. But all the best selling cars in the USA cost between $20k-22k. Sure, we EV enthusiasts can argue Total Cost of Ownership favors the EV, but the average car buyer doesn’t make a buying decision based on TCO. He cares about whether or not he can afford the monthly payments.

    The turning point will come when there is a well-received EV with a price no higher than $25k, after any government rebates. And much as I want to see Tesla Motors succeed, I’m not sure it’s going to be the first company to offer that.