Tesla Gains Continue After Morgan Stanley Battery Supply Endorsement

As the electric vehicle market continues to grow and saturate, it’s the nuances that are going to separate the sprinters from the marathon runners.

According to The Street, Morgan Stanley analyst Adam Jonas has said that Tesla’s batteries could be a key component of the electric vehicle (EV) company’s future growth. Jonas increased his original target price from $750.00 (USD) to $1060.00 (USD) per share, and he believes there’s still lots of room to grow.

Jonas claimed that an EV battery and powertrain supply business was what rationalized the rapid gains, although Tesla has never explicitly stated that it would follow this path, though knowing Elon Musk, they’ll likely sell anything that others are willing to buy.

Others criticized Jonas’ claims on Twitter, echoing the idea that this wasn’t a direction Tesla had planned to pursue.

Still, even these criticisms don’t change the value of the Tesla battery, which is simply however much companies are willing to pay if they should decide to become a supplier. Fortunately for Tesla, their growth in other areas will likely give them the freedom to pursue or skip out on batteries as a separate revenue stream.

Whatever path they follow, Tesla shares have grown more than 20% after unveiling its five-for-one stock split, and the EV company is expected to be included in the S&P 500 this year, so the future is bright for the still-young company.

As of writing, shares of Tesla are up 1.58%, trading at $1,646 per share.