Morgan Stanley analyst Adam Jonas sees chances for electric carmaker Tesla Inc. (NASDAQ:TSLA) to step into the aviation sector in the future.
What Happened: "Is it just me, or are you seeing more 'breadcrumbs' from Tesla's CEO that could potentially connect Tesla with aviation?" Jonas wrote in a note on Monday.
Jonas noted that in Tesla's second-quarter earnings call, company CEO Elon Musk said that the world is headed towards electrified transport, choosing electricity for not just cars but also aircraft and boats. Musk also commented on how the U.S. has limited drone-making capacity as compared to China on Monday, Jonas said.
Jonas currently has a price target of $310 on Tesla, which does not include a valuation for Tesla's possible entry into aviation. But were Tesla to enter the eVTOL or drone market, it could add $100 to $1,000 per share to Tesla's stock price, Jonas said.
Why It Matters: Tesla is currently attempting to recast itself as an AI and robotics company instead of merely an EV maker with increased efforts into unveiling robotaxis, making humanoid robots, and enabling autonomous driving.
"Our company is currently between two major growth waves: the first one began with the global expansion of the Model 3/Y platform and we believe the next one will be initiated by advances in autonomy and introduction of new products...," the company said in its second-quarter earnings report.
Tesla is now scheduled to unveil its dedicated robotaxi offering on Oct. 10. The event was previously scheduled for August but Musk postponed it to make a few important changes aimed at improving the robotaxi and to give the company time to prepare a "couple of other things" to showcase at the event.
Price Action: Tesla's stock closed 0.45% in the green on Monday at $261.63, and it was marginally up by 0.14% in after-market trading. Tesla's shares are up 5.32% year-to-date, according to Benzinga Pro data.
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