Tesla shares skyrocket on Morgan Stanley's "overweight" rating

Throughout the morning and into the early afternoon hours, shares of Tesla Motors (TSLA) skyrocketed after Morgan Stanley analyst Adam Jones upgraded the automaker's rating from "equal weight" to "overweight." Jones, in what almost seems like an April Fool's Day-ish sort of prank, set a price target of $70 per share and declared that Tesla is "America's Fourth Automaker."

Jones continued his Tesla rant, stating:
The confluence of structural industry change, disruptive technology, changing consumer tastes and heightened national security creates an opportunity for significant new entrants in the global auto industry.

California dreaming? We don't think so. In our view, the conditions are ripe for a shake-up of a complacent, century-old industry heavily invested in the status quo of internal combustion. The risks are high. So is the opportunity. Enter Tesla.
But it doesn't end there. Jones says that Morgan Stanley sees "a path to a company with $9.5 billion of sales, $1.2 billion of operating profit and $1 billion of free cash flow by 2020." On the words of Jones, Tesla shares are currently trading at $28.33, up 19.47 percent from yesterday. Hat tip to Dan and Ken!

[Source: Forbes]

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