Morgan Stanley analyst Adam Jonas has defended Tesla on many fronts in a new note, reiterating the firm's one-year target price of $320 for the stock In a note published earlier this month, Morgan Stanley (MS) analyst Adam Jonas reiterated his Overweight rating on Tesla Motors Inc. (TSLA), once again brushing off concerns and criticism from Tesla naysayers. The note predicts that Tesla will overtake other car manufacturers in terms of producing the highest volume of passenger cars made completely out of aluminum as early as 2016. No other automaker uses aluminum in the quantities Tesla expends on its vehicles. The real secret behind the explosive performance of Tesla’s Model S may not be the power sourced from its electric battery pack, but rather the roughly 200 pounds (33%) in weight savings achieved from an extensive use of aluminum to develop the car’s body – which bolsters the car’s performance and makes it durable. The Model S uses about 660 pounds of aluminum, more than twice the industry average. Notably, though, the company has been eyeing price cuts for future cars to better target the mass market. Whether it decides to use as much aluminum for future models remains to be seen.
I think Tesla is one of the best investments you can make right now, they should be getting the electric vehicles to the mass market soon and will probably get a big boom in the next few years.
