• 11 October, 2017 News

    Tesla shares jump after Morgan Stanley raises price forecast
    General Motors have recently announced plans to roll out a line of roughly 20 all-electric vehicles Tesla shares jump after Morgan Stanley raises price forecast

    Shares of Tesla jumped yesterday after Morgan Stanley’s Adam Jonas, widely-followed analyst on Wall Street, raised his 12-month price forecast on the electric vehicle maker.

    General Motors have recently announced plans to roll out a line of roughly 20 all-electric vehicles over the next six years. Though, ambitious plans like these have raised fears about competition for Elon Musk’s company, but Jonas has said that Tesla’s current infrastructure “footprint” will be a “key differentiator” over the coming years.

    "Infrastructure (of lack thereof) is the 'elephant in the room' of the EV revolution," wrote Jonas in a note late Monday. "Compared to other OEMs (Original Equipment Manufacturer), Tesla has made the biggest proprietary investment in superchargers and destination chargers globally. In most communities, we believe this infrastructure is larger than it needs to be in preparation for the expansion of the serviceable and charge-thirsty fleet. Other OEMs will closely watch how consumers react to this infrastructure.”

    Tesla’s shares grew 1.4 per cent premarket trade yesterday after the call. Jonas had raised the price target on Tesla to $379 from $317, representing 11 per cent upside from Monday’s close.

    The shares came under pressure the last couple of days due to concerns about to company’s ability to produce its new Model 3 fast enough to satisfy Wall Street.

    The analysts predict that Tesla has already invested roughly $8 billion to infrastructure spending, constructing numerous service centres, stores and galleries, and the world’s biggest battery factory.

    Last week, Jonas appeared on CNBC's "Power Lunch," where he highlighted how disruptive he views Tesla.

    "I would describe the current environment for autos as a magical, magical time," Jonas said last Wednesday. The analyst stated that traditional carmakers are reviewing their business models as tech-heavy firms and ultimately focussing on areas like artificial intelligence and supercomputing.

    Contact one of our brokers today at, www.forex.ltd.uk.


    Abi Moses

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