Citing skyrocketing oil prices and new government policies, investment banking powerhouse Morgan Stanley has released a 50-page manifesto in which company analyst Adam Jonas writes, "conditions are ripe for a shake-up of a complacent, century-old industry," and that Tesla will turn the Big Three into the Big Four American automakers.
Saying electric cars will make up 5.5% of global car sales—7% in the U.S.—Morgan Stanley predicts a major shift away from the internal combustion engine in the next decade and says Tesla is set to benefit greatly. As a result Morgan Stanley upgraded Tesla’s stock valuation and set a target price of $70 per share. Up until now Tesla stock had been trading around $23 per share. On the news, Tesla’s stock surged to more than $28 per share.
Jonas also writes that Tesla has proven themselves to be a top flight company capable of capturing modest market share in the face of great odds, saying that in the future Tesla will garner at least 7.3% of the 5.5% global electric car market in 2020.
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