America's No. 4 Auto Maker? Tesla Leaps on Bullish Call
After being upgraded and declared “America’s Fourth Automaker” by Morgan Stanley, shares of electric auto maker Tesla Motor soared more than 13% Thursday morning.
Morgan Stanley upgraded Tesla to “overweight” from “equal weight” and predicted the company can hold 3.6% of the global auto market within ten years, Dow Jones Newswires reported.
Analysts at Morgan also reportedly slapped a $70 price target on Tesla, implying the stock could more than double by the end of the year.
Wall Street cheered the bullish note, bidding Tesla’s stock up 12.02% to $23.61 Thursday morning. The rally trimmed Tesla's 2011 loss to 10.9%.
Palo Alto, Calif.-based Tesla says it is the only U.S. auto maker that builds and sells highway-capable electric vehicles in serial production.
Tesla badly trails America’s largest auto makers: Ford (NYSE:F), General Motors (NYSE:GM) and Chrysler. Toyota (NYSE:TM) is the world’s largest auto maker.
However, Morgan Stanley predicted 5.5% electric car penetration globally by 2020 and 15% in 2025, Dow Jones reported.