Tesla (NASDAQ: TSLA) recently received an optimistic outlook from Morgan Stanley, with analyst Adam Jonas raising his price target to a “Street High” of $ 810 per share, above his previous estimate of $ 540 per share. The investment bank and financial services firm also maintained their “Overweight” rating on TSLA shares, giving the electric car maker an optimistic estimate of $ 1,232.
Jonas’ updated estimates for Tesla put him among the company’s bulls, especially since its target price of $ 810 is about 10% above the closing of TSLA’s shares on Tuesday. In comparison, Street’s average forecast for Tesla’s shares is currently at $ 437.15, according to FactSet.
“Although the range of results is admittedly high, the market has ‘chosen’ to assign a higher level of discounted value to Tesla than is normally discounted for its peers. Despite the extraordinary stock price race, we continue to believe that Tesla can outperform our industry in 2021. In our opinion, Tesla is still the best positioned company in EVs and AVs under our coverage due to its people, its technology, business model and access to capital.
“In addition, it is important to note that the company has no involvement with environmental liabilities that burden its competition legacy. Put it all together and we believe that Tesla’s business model can unlock recurring revenue from mobility services faster and more profitably than the competition. We strive to find a more innovative company, with the capacity to execute against the high degree of difficulty inherent in sustainable transport and energy on a scale. We think it’s a very short list, “noted Jonas, according to StreetInsider.
The analyst also raised his volume estimates for 2030 to 5.2 million units, an increase of 27% over the previous expectation of 3.8 million units. While optimistic, this is still conservative compared to Tesla’s own estimates. Elon Musk noted at Battery Day that Tesla will aim to produce 20 million vehicles a year before 2030.
Morgan Stanley’s recent update comes on the heels of Tesla’s fourth quarter 2020 vehicle production and delivery report, which revealed that the company was able to produce and deliver half a million cars in 2020. That was despite 2020 being a marked year by a pandemic that affected heavy blows against the auto industry.
As noted in a Wall Street Newspaper, analysts at several research companies currently expect vehicle sales in the U.S. to total 14.4-14.6 million in 2020, once the final results are achieved. This represents a 15% drop from the previous year and the lowest since at least 2012.
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