J.P. Morgan analysts predict Tesla stock price could jump 30% by end of 2011

Himanshu Patel and Vivek Aalok are two people that you've likely never heard of, but you'll certainly become familiar with a report that they recently wrote for J.P. Morgan and here's why: Patel and Aalok wrote up a 38-page research study of Tesla Motors to determine the company's likelihood of success in the coming years. The report, written for current Tesla shareholders, concludes that Tesla Motors' stock prices may jump up by as much as 30 percent, therefore reaching $25, by the end 2011. This conclusion was reached after carefully considering all aspects of the company including development and production costs, upcoming model debuts, Tesla's ability to overcome technical challenges and much more.

This in-depth report is a must read and may even convince you to buy up all of the TSLA shares that you can get your greedy little hands on, but we're not so sure that's a good idea. As Patel and Aalok mentioned in the report:

Tesla spends a fraction of what global auto peers spend to develop a new vehicle, and does it relatively fast. While Tesla is clearly effectively putting all its eggs in one basket, its sole focus on pure EVs should help it better conquer technical challenges and also keep costs low.

While the analysts would like us to believe that Tesla's low developmental costs, quick model launches, and its sole focus on electric vehicles are attributes that make the company stronger, we'd suggest that in many ways, these same attributes, especially the company's limited product diversity, makes Tesla more volatile and much riskier to invest in than, say, Toyota. But we encourage you to click here (PDF) to read about Tesla's potentially bright future and decide if investment in the company is the right thing for you.

[Source: J..P Morgan via Green Car Advisor]