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What: Tesla Motors
So what: Morgan Stanley upgraded Tesla to "overweight" with a $70 price target, more than three times yesterday's closing price of $23.71. The analyst believes rising oil prices and increasing government support will create greater-than-forecasted demand for electric vehicles.
Now what: Morgan Stanley, which helped take Tesla public in June 2010, said the company has the "opportunity" to establish itself as the fourth largest automaker in America, with the biggest risk being execution of its plan. It is not clear whether Tesla will ever turn a profit, or even survive. The stock seems pricey for the "opportunity" to become a major auto player -- or another DeLorean Motor Co.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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