Jonas said that Tesla should be viewed as more than just an automotive business. The best specialists in a wide variety of fields strive to work for Elon Musk. Tesla continues to gather assets, technology, and the talent necessary in its efforts towards opening a vertically integrated battery business that can improve the industry's cost curve.
The company is making rapid advancements in the field of battery production, and may very well disrupt the EV battery industry, as well as further grow the entire space.
Morgan Stanley conducted Tesla's analysis in collaboration with its Asian Technology team (led by Shawn Kim) and expresses rising confidence in Tesla's ability to unleash even greater potential on Battery Day on September 22nd.
Jonas named the potential to grow the company's battery business as a key driver for mid-term profit. He also noted that factors other than the sale and delivery of vehicles--which have traditionally provided both top and bottom margins for the world's most valuable automaker--may begin to have increasing influence on Tesla's future success.
Based on the data that has been collected, Morgan Stanley is now valuing Tesla considering its potential 3rd party battery and EV powertrain supply businesses.
On August 13 Morgan Stanley raised its Tesla (TSLA) target price to $1,360 and updated its "bull case scenario" to $2,636.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
