If you liked Tesla shares at $200, wait 'till they get to $300. That's basically what a Morgan Stanley report released Tuesday says.
Analysts Adam Jones, Stephen Byrd, Ravi Shanker, and Masahiro Ono believe Tesla isn't just shaking up the auto industry, it's also a disrupter in the energy industry. The Morgan Stanley analysts write, "If it can be a leader in commercializing battery packs, investors may never look at Tesla the same again."
Tesla's stock closed Tuesday up 14% to $248 per share. In other words, Morgan Stanley expects the stock to move up another 29% from where it currently trades. In the last twelve months, Tesla's stock is up 533%.
James Albertine, Vice President Stifel Equity Research, says Tesla's future lies with its battery business.
"We are decidedly bearish when it comes to the vehicles side of the equation," says Albertine on CNBC's Street Signs' Talking Numbers segment. "Where we're incrementally bullish is off the news last week having to do with the 'Giga Factory' and the opportunity that can potentially open up in the energy utility space. That we do think has more room for growth and could substantiate the current, if not higher, valuation."
Tesla's CEO Elon Musk recently announced the company's plans to mass produce lithium ion batteries (at a "Giga Factory") at such a level that it would be about the equivalent of the current global production.
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Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, is also very bullish on Tesla's stock.
"I think the stock can trade over $300 a share," says Ross. "We have a very bullish stock chart with extremely high short interest of over 37% of shares outstanding and a compelling fundamental story."
Tesla shares' ability to hold its technically significant 200-day moving average after falling 40% on news of fires involving Tesla vehicles is leading Ross to be optimistic.
"Keep one little fact in mind here: a $30 billion (roughly) market cap [is] very close to Netflix, very close to Twitter," says Ross. "Ten years from now, bet on one of those three companies. Who do you think is going to be around? I think like Tesla's chances here. I'd be a buyer. "
To see the rest of the discussion on Tesla with Albertine on the fundamentals and Ross on the technicals, watch the video above.
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