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Adam Jonas: Tesla Likely To Articulate Shared Mobile Strategy Early Next Year

Zoheb Sait
  • Tesla Motors Inc (NASDAQ: TSLA) shares are trading around the mid-point of their 52-week range of $181.40 - $286.65, despite having risen 12 percent year-to-date.
  • Morgan Stanley’s Adam Jonas maintained an Overweight rating for the company, with a price target of $465.
  • Jonas said that feedback from investors indicated that they were focusing more on the company’s potential entry into shared mobility, and less on strategic motivation, financials and valuation.

Analyst Adam Jonas mentioned that investor feedback collated since Morgan Stanley’s August 17 publication - Tesla Mobility? Raising Price Target to $465 - has focused “far more on the timing of Tesla’s potential entry into shared mobility, competition from Apple... and less on the strategic motivation, financial assumptions and valuation considerations.”

While saying that it is difficult to predict when Tesla would confirm the launch of its Uber-like, shared transportation model, Jonas said, “[W]e’d be surprised if the company did not articulate some form of shared mobility strategy before the time of the Model 3 unveiling in early 2016.”

In the report Morgan Stanley noted, “This theme is not limited to just Tesla. We believe almost every global auto company could launch some form of shared mobility business model over the next 12 to 24 months. Many, such as Ford and BMW, have already made announcements in this area.”

Jonas believes that Tesla and Uber are competitors. While Uber uses iPhones to connect car owners with people who need a ride, Tesla is trying to make the iPhone do an increasing amount of the driving without any input from a human operator.

“Both models are addressing the same problems, but starting on opposite sides of the football field. The sustainable equilibrium is somewhere in between,” Jonas added.

Latest Ratings for TSLA

Date Firm Action From To
Sep 2015 Oppenheimer Maintains Outperform
Aug 2015 Morgan Stanley Maintains Overweight
Jul 2015 UBS Downgrades Neutral Sell

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