Morgan Stanley Asks If Tesla (TSLA) Is The Amazon (AMZN) Of Autos

Morgan Stanley maintains Equalweight on Tesla Motors (NASDAQ: TSLA) price target of $305.00.

Analyst Adam Jonas believes it is now time to ponder if Tesla is the Amazon (NASDAQ: AMZN) of autos given its valuation is above that of Ford (NYSE: F) and General Motors (NYSE: GM) and the company begins to challenge the characterization that it is just a car company.

He comments in a research note that investors he has spoken with see Tesla as more than a car company and points toward shared mobility, autonomous driving and electric transportation capabilities. He writes "We believe the market is increasingly coming around to the idea of giving Tesla a low chance of success in a far larger addressable market (transport network, data, time) rather than a high chance of success in a smaller addressable market (cars/machines)."

Jonas further believes that the market may price in the value of Tesla as a strategic or trophy asset as the company builds out infrastructure and unveils its "Tesla Network". He believes given this potential that it is possible for Tesla to reach his bull case PT of $511.

FY 2017 EPS estimate remains at a loss of $6.59, FY 2018 EPS estimate remains at a loss of $3.24 and FY 2019 EPS estimate remains at a gain of $2.05.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $335.10 yesterday.

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