Published on September 10th, 2015 | by James Ayre1
Morgan Stanley Analyst Predicts Tesla To Offer “Uber Like” Service Before Model 3 Unveiled
In a rather interesting prediction, the Morgan Stanley analyst Adam Jonas has stated that he expects Tesla to officially unveil an “Uber like” service — well, a service intended to compete in the same market anyways — before the official unveiling of the Model 3 (currently slated for March 2016).
It should be noted here that the exact words were that he would be surprised if they didn’t — but that sounds like a prediction to me, does it not to you?
The analyst in question also set a price target of $465 for Tesla’s stock — a pretty substantial target considering that the stock is currently resting around $250. While I think that the company’s stock stands a fair chance of climbing well above $300, I do think that it’s worth taking note of the analyst’s optimism when considering the comments about the rumored Uber-like service.
Electrek provides some background on the subject:
It would be important to note that Jonas is not working with that much information here. The whole thing started during the last financial results conference call when he asked a question to CEO Elon Musk about the potential of a partnership with Uber or a standalone app from Tesla, and Musk refused to answer.
Here’s the short conversation:
Adam Jonas – Morgan Stanley: Hey, Elon, Deepak. First question, Steve Jurvetson was recently quoted saying that Uber CEO, Travis Kalanick, told him that if, by 2020, Tesla’s cars are autonomous, that he’d want to buy all of them. Is this a real – I mean, forget like the 2020 for a moment, but is this a real business opportunity for Tesla, supplying cars to ridesharing firms, or does Tesla just cut out the middleman and sell on-demand electric mobility services directly from the company on its own platform?
Elon Musk – Tesla’s CEO: That’s an insightful question.
Adam Jonas – Morgan Stanley: You don’t have to answer it.
Elon Musk – Tesla’s CEO: I think – I don’t think I should answer it.
Things snowballed from here. A few weeks later, Tesla announced a $500 million secondary stock offering. Morgan Stanley was one of the underwriters of the offering. The following week Jonas issued his first note with a $465 price target taking into account “Tesla Mobility” which helped Tesla’s stock with a 5% gain the day he released the note.
Hmm. Interesting situation. I would hazard a guess that there would certainly be a market there for something like that. I would probably even take advantage of it occasionally myself to be honest, but until it’s concrete, I can’t help but wonder what the motives behind these rumors are.