Tesla Motors Morgan Stanley reiterates Overweight rating, price target $149 - Firm argues Tesla cannot be valued on near-term multiple metrics like traditional auto companies given that they expect Tesla to multiply revenues by more than 10x from 2012 to 2016 by nearly 30x by 2020 and around 60x by 2027. They have thus chosen a 15-year time horizon for their DCF which captures the full maturation of the Model S, Model X (and top-hat derivatives) and also the ramp up of its mass market electric vehicle (the Gen 3). Firm has applied a 11% WACC with a range of 9% to 13%. The terminal value, calculated on a midpoint of 10x EV/EBITDA accounts for roughly 50% of the total DCF value across the range of methodologies they have applied to arrive at their $149 PT.
Stock lost 3,4% yesterday, 16,7% on the last 6 trading days