Morgan Stanley: Tesla Stock Could Hit $1,900 (w/video)

MAY 10 2015 BY STAFF 29

Not Your Typical CEO

Not Your Typical CEO

Morgan Stanley’s latest Tesla Motors stock prediction is extremely bullish.

On March 12th, Morgan Stanley analyst Adam Jonas and colleagues published a video presenting the bull case on Tesla.

The video suggests that Tesla’s research-heavy, customer-focused business model will revolutionize the automobile industry.

Jonas concludes:

“This is a hyper-ambitious company, and the only one we cover whose stock price can realistically multiply by ten. It can also get cut in half. But we think patient investors will be rewarded…”

$1,900 for TSLA stock is not beyond reach, according to Morgan Stanley.

*Disclaimer: InsideEVs holds no Tesla positions of any kind.  Additionally, InsideEVs is not a financial site.  The predictions/statements listed above come via Morgan Stanley.

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29 Comments on "Morgan Stanley: Tesla Stock Could Hit $1,900 (w/video)"

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Lensman

“InsideEVs is not a financial site.”

Yes, so this sort of article appears to be inappropriate for this website. Altho I appreciate the coverage InsideEVs gives to Tesla Motors, I think this sort of outright stock pumper article is out of place here.

However, I appreciate the photo of Elon Musk revealing his inner Dr. Evil. 😀

Alaa

-1

no comment

this reminds me of how much i like that this website doesn’t allow “voting” on posts. if you don’t like a post, just don’t read it; if you don’t like a poster, then just don’t read the person’s stuff when you it.

Open-Mind

I also dislike the comment voting, but alas … I tend to say things that are unpopular. 😉

To me, the potential financial success of the world’s only dedicated EV maker is both significant and news-worthy. If Morgan Stanley is making such predictions, then I appreciate knowing about it.

Robert

Why do you need to vote on a comment?
Just tell the poster they are a nob and don’t know what they’re talking about. 🙂

Ambulator

It was a fun video, so I think posting it here was highly appropriate! So was the disclaimer.

Lensman

The video is indeed highly appropriate for InsideEVs. Plugging Morgan Stanley’s pumper suggestion that “Tesla Stock Could Hit $1,900” in the headline and again in the article… isn’t.

There are plenty of websites devoted to stock investing, where stock pumping is common and expected; websites like Seeking Alpha and Motley Fool. I don’t want to see InsideEVs turn into a clone of those websites. I especially don’t want to see on InsideEVs the sort of unending, repetitive, downright nasty attack and counter-attack posts from stock pumpers and short-sellers which fill the comment threads on articles at those websites.

Ambulator

I hadn’t thought about the headline. The headline should attract readers, so maybe:

Morgan Stanley: Tesla Stock Could Be Halved (w/video)

That could work even better! But now I see your point. The headline could have focused more on the Dr. Evil aspect.

Chris O

Hmm, interesting and directly Tesla related news doesn’t belong on InsideEVs somehow? It’s not inside Big Oil you know…

Radam

Hy Lensman! 🙂

Lensman

Hello again Radam! 🙂

jim seko

InsideEvs and other green car websites also cover the Tesla short seller opinions because it readers, like us, are attracted to these headlines like moths to a 100W lightbulb. And judging by the number of comments, they had some success.

Mister G

In my opinion, Morgan Stanley management mostly drive Bentley. WALL STREET GOT BAILED OUT MIDDLE CLASS GOT SOLD OUT

Jouni Valkonen

Untrue. I bet that at least half in Morgan Stanley have already ditched their Bentley into gutter and bought 4WD Tesla.

LuStuccc

I found the video a little weird and not really professionnal stuff.
It can be an offensive to artificially pump the stock , only to make it crash when it will suit them…

Euro point of view

The statement of Jonas is “old” :2 monts ago . During the while , more recent take from the same has plaid an other tune .

Nix

To be clear, the stock probably wouldn’t go to 1,900. It would likely see stock splits before then. A price of 400-800 after splits would be a more likely scenario.

Nix

Not that I’m saying it is likely to go there. Just in the unlikely scenario where it DID go there, it would be more likely to be a much lower price, after splits.

no comment

a lot of these wall street firms take long positions in a stock and their “analysts” then make wild predictions about the growth prospects.

i mean, really, tesla is a company that isn’t even profitable. $1,900/share? really? are you kidding???

i’ve seen this movie in the past and it typically didn’t end well, at least not for the suckers who bought the hyped-up stock. it always ended well for the stock analysts and investment banks, though…

daniel

Not saying I agree with the $1900 comment, but they said in last earning call that they will be cash flow positive in q4 of this year.

Elon said earlier this year that they will be GAAP profitable by 2020, and with how things are going with the battery unit it will probably be sooner. Of course a lot depends on the model 3 too.
They are priced to perfection which is always risky.

no comment
i haven’t looked at tesla’s financial statements, so i’ll have to take your word for it that they had positive funds flow for the last quarter. that said, it’s hard for me to see how that is possible: they are not profitable overall and they are spending a lot of money on investments like the supercharger network and the tesla plant. unless tesla took on a lot of debt or they issued a lot of stock this past quarter, it’s hard for me to see how they got a positive cash flow position. the thing about tesla is that they are a low volume auto manufacturer. at present they don’t have the infrastructure for large sales volume. there are only 4 tesla dealerships in the *entire* chicago area. as you would expect, those dealerships are located in high income areas. but for tesla to scale up to high volume, they would either have to massively expand their dealer network (aside from the huge logistical problems, that would also involve a lot of cash outlay) or they would have to go to a dealer model like that used by other auto makers. maybe tesla is counting on there being a massive… Read more »
LuStuccc

Amazon isn’t “profitable” either. When you invest heavily and develop profitable new markets, you’re not “profitable”
Is your misinformer job profitable?

no comment

if you understood how financial reporting works, you would realize that “investments” don’t directly cause a company to incur losses on their profit and loss statements. they are two different things.

tesla is not reporting losses because of the investments that they are making.

Tesla is largely not profitable because of deferred revenue from buy-back guarantees and leases.

My understanding is they attempt to run the company at net zero profitability after adjusting for these items, so roughly cash flow of zero. They have been burning cash faster than many anticipated after raising $2 billion about a year ago for the GigaFactory. I think they are down to $1.5 billion and there is not $500 million of progress on the factory.

I personally doubt that Tesla will turn a profit until someone other than Musk takes over a CEO. He wants to develop new awesome stuff so much, he will spend whatever money they make.

Ambulator

It’s not that they HAD positive cash flow, it’s that they WILL have. It’s not the fourth quarter yet.

I don’t particularly believe it either, but maybe.

Ocean Railroader

I think I have a higher chance of seeing a a Pink Unicorn driving a Mitsubishi i-miev or Tesla long before we see Tesla stock go up to $1900 http://www.deviantart.com/art/Teaching-Princess-Cadence-to-Drive-452975683 and http://www.deviantart.com/art/Starveil-driving-North-of-the-Crystal-Empire-508639259

Personally I think Tesla’s stock might go down to $80 to $150 due to Tesla having massive delay after delay with their produces. But I do think Tesla could go to the $200’s in value if their solar batteries take off. The solar batteries could possibly out number the car sales.

Ocean Railroader

Most likely I think this guy will show up to gore Tesla’s stock long before it gets to gets above a $1000

http://www.deviantart.com/art/Can-Tesla-Keep-Out-the-Bear-397660466

Open-Mind

April, 2015 reminds me of January, 2007. That’s when Steve Jobs showed the world how all smart-phones should and would work. Dim wits like Steve Ballmer ridiculed him. Smart people bought AAPL stock, which has increased in value 1000% since then.

IMO, Elon Musk is currently doing the same thing to the solar energy and automobile industries. I wish I had recognized that when TSLA was still $30. Oh well … better late than never.

daniel

If you factor in the 8% improvement y-o-y in battery performance and 30% reduction in price from gigafactory, Tesla will get to $100/kWh in less than 10 yr and have a few years of advantage once it gets there.
If we are talking about a scale like the 2 billion units of 100 kWh packs this is a trillion dollar global industry Tesla will be leading. So the returns sure justify the risk.