Tesla Motors Inc (NASDAQ:TSLA) appears to have thrown off most of the mainstream skepticism that weighed it down for months as major financial institutions appear certain that the stock is one of the best bets on the market right now. A new report from Morgan Stanley (NYSE:MS) raises the price target on the company from $47 to $103, in a truly stunning report.
The report is one of the most universally positive on Tesla, marking it for mythic success in every feasible way. According to the Morgan Stanley (NYSE:MS) analysis, Tesla has four important factors in its favor. The first is its raising of capital by working for competitors, the company’s financing announcement will multiply its base, the newly high share price increases liquidity, and the company is probably the strongest auto brand.
Most of the time, it's easy to spot trends within hedge funds' quarterly 13F filings, but things were different in the third quarter. One of the easiest trends to spot has been tech stocks, but this time around, there was relatively little movement in tech names. Rising And Falling Stars In Tech Of course, that Read More
The fourth factor may seem like hyperbole, but it bears some scrutiny. As the Morgan Stanley (NYSE:MS) report says, the company is just 20 percent the size of BMW (in terms of market cap), but it has released the highest ever auto rating by Consumers Reports of all time, and Motor Trend Car of the Year. So far at least, 2013 has been Tesla’s year without a doubt.
Tesla Motors Inc (NASDAQ:TSLA), on the base case spelled out by Morgan Stanley (NYSE:MS), should be worth $103 per share in approaching months. The company is currently worth $200 per share, while the company’s bear case carries a $20 price target.
The risk/reward problems for the company may seem substantial, but the Morgan Stanley analysts write it off, reducing risk factors to things like value , guaranteeing problems with the Model S when it comes to resale time, and government policies. There are surely more risks that the investment bank is ignoring.
On today’s market, stock in Tesla Motors Inc (NASDAQ:TSLA) fell by more than 5 percent to close the day’s trading at $83.24. There appears to have been a mild depression on the shares related to short pressure, and market expectations of continued short squeeze pressures influencing the company’s stock.
Tesla Motors Inc (TSLA) Stock
Since the start of 2013, the year in which Tesla Motors Inc (NASDAQ:TSLA) managed to gain mainstream recognition, the company’s stock has risen by more than 145 percent through today’s close. A price target of $103 implies a rise of about 25 percent in the year to come, something very feasible if Tesla Motors Inc (NASDAQ:TSLA) will perform as well in the rest of the year as they have in Q1.