Tesla Inc (NASDAQ:TSLA), a top NASDAQ stock, is now the company to watch and a number of the top analysts at Morgan Stanley concurred with this after they termed its new car model-Tesla Model 3 sedan, the safest one around by a long short. The analysts gave their opinion on Thursday.
From the inside sources, model 3 is expected to showcase a 10-times more safety level in relation to the average cars. On the same note, it has been termed to bear a 90% less likelihood to cause a vehicle-to-pedestrian or a vehicle-to-vehicle fatal accident.
In addition, the analysts stated that soon Tesla would be gaining a huge fleet which will enable it test the advanced driver-assistance features and train its systems.
Model 3, which is aimed at the mass market, is the linchpin of Tesla’s plan to grow and become a bigger car maker. Close sources indicate that it might soon be able to ramp up production to half a million cars and that will be by the end of the following year.
The Morgan Stanley analysts on close talks have also revealed that Tesla “Model Y,” or a possible small-size SUV, would most probably be the top provider’s best selling car at the center of a “Tesla Mobility” strategy combining the on-demand ride-sharing service and the electric cars.
The expert analysts reiterated their buy rating on Tesla and their $305 price aim on the shares is a perfect representation of a 20% upside from Thursday prices. It doesn’t come by surprise that Tesla has indeed witnessed a capital raise since that was very much expected.
At a conference call that happened last month after the quarterly results, Musk spoke to analysts citing that it was a prudent move unveiling Model 3 though it wasn’t quite necessary tapping on the markets.
The various analysts have differed with a fraction of them terming the smaller deal a sign of confidence on the Model 3 rollout. Others have raised concerns regarding Tesla’s spending and it is not yet known whether or not the top NASDAQ Stock will again be tapping on the capital markets incase the vehicle launch is delayed.