Posted on March 13, 2015 by Matt Pressman
As the bulls and bears battle it out over the Tesla Motors (TSLA) future-forward business model, occasionally you get a refreshing view (backed by in-house research) from an analyst that covers the automotive sector. This doesn't happen often with Tesla Motors. Why? Tesla's CEO Elon Musk has a vision and ambition too disruptive for shortsighted Wall Street folks to understand clearly. Nevertheless, yesterday we got a unique glimpse into Tesla's disruptive vision from a quirky, but compelling video titled "Why Tesla Motors Might Be the World's Most Important Car Company" from analyst Adam Jonas at Morgan Stanley. Let's take a look...
Source: Morgan Stanley Research
As reported in Business Insider* there were some intriguing (and bold) predictions/statements made throughout the short video. Here are some of the highlights...
On TSLA stock price:
"This is a hyper-ambitious company, and the only one we cover whose stock price can realistically multiply by ten. It can also get cut in half. But we think patient investors will be rewarded if they can hang on for a wild ride."
On Tesla Motors Silicon Valley advantage:
"Around 60% of Tesla employees are involved in software engineering, versus a normal auto company at around 2%. This is important because the value added of software in a car rises from 5% today to 60% over the next decade. When Elon wants to hire a key software engineer, he doesn't call Hyundai or BMW. He goes to places like Apple, Google, Facebook. Theoretically, this talent could move to Detroit, or they could stay in California. Hmmm."
On Tesla Motors Gigafactory and lithium ion battery dominance:
"Tesla's all-electric power train makes the company one of the largest consumers of lithium ion batteries in the world, and it wants to be the world's biggest producer of lithium ion batteries. How big? Like five times bigger than the next-biggest player. By 2029 we estimate Tesla's 6.5 million unit global fleet will contain a stored energy capacity of 410 gigawatt hours, an amount equal to the entire daily consumption of electricity in the nation of Mexico."
*Source: Business Insider