Some people are positive about a certain stock; others are extremely bullish. That is apparently how the analysts of Morgan Stanley (MS) feel about Tesla Motors (TSLA) and its future share price.
Adam Jonas, analyst at Morgan Stanley, mentioned that Tesla Motors is an enormously ambitious company. It is the only company of which Morgan Stanley believes that the share price could realistically go up by a factor of 10x.
Tesla Motors’ Share Price 10X
The share price can easily increase by 10x in the eyes of the analysts. The stock is listed at about $190 at the moment, which equates to a market cap of 24 billion dollars. Despite the stock’s recent weakness, the share price is still double of what it was halfway through 2013. Over the last 3 years, shares have even gone up by about 500 percent.
According to Morgan Stanley’s estimations, Tesla Motors could become a $1,900 per share stock with the accompanying market value of 240 billion dollars. That increase would turn Tesla into one of the 15 largest companies in the United States of America, bigger than the likes of Chevron, Coke and Facebook, to name a few.
Tesla will not only revolutionize the car industry, according to Morgan Stanley, but it also a research company at the same time. Other car companies have about 2 percent of their employees in R&D, while Tesla has about 60 percent of its employees in R&D. That will pay off down the road and potentially in other industries.
THIS is a huge opportunity in our opinion for the future.
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