How Tesla’s valuation can reach and exceed the heights of Apple, according to Morgan Stanley
Tesla could reach and exceed the heights of Apple, according to Morgan Stanley, only through data and content.
Tesla can be worth more than Apple, said previously Elon Musk, the company’s co-founder and CEO. But, according to Adam Jonas, head of global auto research for Morgan Stanley, only one business can make that happen.
In a research note sent Monday, Jonas said, based on conversations with investors, that he does not think a successful Model 3, or subsequent similar models, will push Tesla’s valuation to the heights Apple has reached. Neither will a successful electric semitruck, solar roof or energy storage business, CNBC reports.
loading...
“In our view,” Jonas said in his note, “there’s only one market big enough to propel the stock’s value to the levels of Elon Musk’s aspirations: that of miles, data and content.”
Tesla’s cars can send and receive data from the company via Wi-Fi or cellular networks and thus can perform many maintenance tasks and upgrades via software updates. It also allows the company to collect information on the car, for everything from diagnosing service issues to improving the car’s Autopilot driver assist system. This data, along with the content and services Tesla could offer customers, may be the company’s biggest driver of value going forward.
Tesla’s customer data represents a strategic value to firms interested in entering transportation, Jonas wrote, whose bull case valuation for Tesla is $511.
Loading...