$TSLA Takes Off After Analyst Doubles Price Target

Tesla Motors could hit $320-per-share, according to a Morgan Stanley analyst. In a note this morning, analyst Adam Jonas more than doubled his price target for the electric-car company’s stock on the belief that Tesla’s gigafactory could be a game changer for the electric utility industry.

Tesla shares rose more than 10% in early trading. At its intra-day share price of about $240, Tesla has a $29.5 Billion market cap.

$TSLA If this price can hold during regular market hours the MS upgrade added about 1.7 billion to the market cap. Lol…

— Ryan (@SMU_Trader) Feb. 25 at 09:25 AM

Tesla CEO Elon Musk plans to announce details of a lithium ion battery factory this week. On an earnings call last week, Musk said Tesla will partner with a battery manufacturer and pre-cost component suppliers to create a factory capable of building enough batteries to support a third-generation mass-market electric vehicle. Tesla’s current lithium ion battery supplier, Panasonic, is assumed to be a primary partner in the gigafactory.

Jonas believes that the factory could make Tesla the leading low-cost battery producer, disrupting related industries such as electric grid power storage. He is also modeling Tesla annual vehicle sales of more than 1.1 million by 2028.

$TSLA I owed one to MS Adam Jones. Help me recover from a broken trade I made yesterday.In the black now and watching it carefully. Lucky me

— Light trader (@lighttrader) Feb. 25 at 09:17 AM


Morgan Stanley isn’t the only firm calling for $TSLA to rise more than 45% from yesterday’s closing price. Dougherty & Co. analysts set a $325 price target the day after Tesla’s Feb 19 earnings call.

Some cashtaggers warned that Morgan Stanley’s call and the resulting price action was a sure sign of the top. At the intra day price, the company’s price to forward 2015 earnings ratio is more than 61X.

$SPY … And that $TSLA upgrade – Classic topping action. This is WAY out of control. Buyer Beware.

— BL834 (@Lach14) Feb. 25 at 09:30 AM


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