Morgan Stanley analyst Adam Jonas reiterated an Equalweight rating and $250.00 price target on Tesla (NASDAQ: TSLA) speculating that the location of the company's European Gigafactory is likely to be Germany, the heart of the global luxury auto market, an economy dependent on internal combustion tech and home to a government focused on climate change. The analyst offers 3 reasons to support this belief:

1) The issue is supply of skilled labor, not labor costs. The analyst believes Tesla wants to attract highly skilled labor/software engineering talent.

2) Germany has a long-standing tradition of making some of the world’s most advanced automobiles

3) Germany appears to be prioritizing electrification more aggressively than other regions

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Shares of Tesla closed at $330.99 yesterday.