SpaceX's Historic Launch Adds to Tesla (TSLA) CEO Elon Musk's Credibility - Morgan Stanley

June 1, 2020 6:34 AM EDT
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Morgan Stanley analyst Adam Jonas believes SpaceX's successfully launch of astronauts Bob Behnken and
Doug Hurley to the ISS this weekend has "significant" implications for Tesla (NASDAQ: TSLA), in addition to the space economy, and the country. Jonas said the successful launch adds to CEO Elon Musk's credibility.

"In our opinion, Elon Musk is every bit as identified with the creation and ambition of SpaceX as he is with Tesla. As such, we believe the success of SpaceX in achieving some of the most sophisticated challenges in science has a direct bearing on public, investor and government perception of his ability to lead and execute. So does Elon Musk’s success (or lack thereof) at SpaceX have any bearing on the market’s perception of Tesla? In our opinion, it does. While we cannot ascribe a dollar amount to this factor, the credibility of Musk’s leadership even outside of the automotive business, matters to Tesla."

Despite the positive comments on Musk, the analyst reiterated an Equalweight rating and $680 price target on Tesla.

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

Shares of Tesla closed at $852.00 yesterday.

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