It seems that no day goes by without at least one news – usually good – about the rising star of American motoring – the electric car company Tesla. Now, the market valuation has topped the fabulous $30 Billion mark.
The new valuation came after a note from Morgan Stanley, in which it was said that Tesla’s 12-month projected share price would exceed $320. The company’s market total value, now at around $30.4 billion, is actually more than half that of GM – after the shares went up more than seven times in the past years – despite some setbacks caused by the reported accidents in which the Model S caught fire.
Adam Jonas, a Morgan Stanley analyst, said in his note that Chief Executive Officer Elon Musk’s battery factory plans could also aid Tesla more than double its worldwide market share to reach around 1% – a feat that could affect both automotive and energy industry.
“If it can be a leader in commercializing battery packs, investors may never look at Tesla the same way again, said Jonas, who rates the shares overweight. ‘‘If Tesla can become the world’s low-cost producer in energy storage, we see significant optionality for Tesla to disrupt adjacent industries.’’
The analyst predicted the $320 per share price on estimation for a 15-year outlook that would allow the company to grow and expand its line-up and businesses. Following the note, shares of Tesla were raised 14% in New York to $248.
by Aurel Niculescu
) - Wednesday, February 26th, 2014 - filed under Industry
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