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Morgan Stanley Says Tesla Motors is the World’s Most Important Automaker

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Tesla Motors, Never Underestimate "Small" Companies
Tesla Motors, Never Underestimate “Small” Companies

Tesla Motors may be the most-successful automobile startup in the last half-century and, at least according to Morgan Stanley, could be the world’s most important.

Tesla Motors’ initial public offering started at just $19.10, just shy of four years ago, a modest beginning for a startup automaker with a totally unique vehicle, the fully-electric Tesla Roadster and Tesla Model S electric vehicles. At first, stock value growth was modest and, for nearly three years, it never topped $50 per share, but the last year has been explosive, TSLA stock going for $243, and a market value of over $30 billion. Still, this pales in comparison to one of the biggest automakers in the world, Toyota Motor Corporation, whose TM stock may sell for half the price, but whose overall value is nearly $190 billion.

According to financial advisory corporation Morgan Stanley, however, Tesla Motors could be the world’s most-important automaker, in spite of differing values, but how so? Research analyst Adam Jonas said of Tesla Motors, “Not even two years after the delivery of the first Model S, Tesla Motors has transformed from fledgling start-up to arguably the most important car company in the world. We are not joking. Tesla is also emerging as an emblematic force in America’s effort to foster high tech manufacturing job growth.”

Tesla Motors, in itself, in the face of other failed ventures, such as Fisker Automotive and A123 Systems, has proven to be a leader in electric vehicles and even conventional vehicles. After all, no other automaker has ever received a 99:100 Consumer Reports rating. So, what do other automakers do with a leader? They follow! General Motors has a so-called “Team Tesla” dedicated to developing long-range electric vehicles, and BMW’s “spirit of innovation” has been revitalized, all following the leadership and success of one small company, Tesla Motors. Tesla Motors may even single-handedly change the way we buy cars, which will be a breath of fresh air for people who dread traditional automobile dealerships.

Photo credit: jurvetson

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3 COMMENTS

  1. http://www.livefyre.com/profile/52007581/ I agree with
    LoneWolffe here.  Tesla basically uses OTS technologies, GM’s EV1 in
    today’s world would be interesting.  Particularly since GM’s Cadillac ELR
    includes an “on-board” gasoline engine-generator which extends the
    (charged-up/filled-up) driving range to around 360 miles).  I believe that
    “breakthroughs” in lithium ion batteries and Fuel Cells absolutely
    pale in comparison to an “on-board TDI DIESEL engine generator
    (potentially Veggie Fueled) technology that could possibly eliminate,  minimize, or extend the life of the lithium
    ion battery, thereby pushing the EREV into uncharted territories of Extended
    Ranges.  Off-the-shelf wise, this means that Tesla is, by incorporating an
    “On-Board TDI Diesel Generator”, close to knocking the socks off of
    financial world.  But GM, unbeknown to them, by incorporating  the
    TDI Diesel into their existing technology, is even closer because (patents
    notwithstanding) it would virtually neutralize Tesla’s “Direct Sales”
    approach – the old fashioned way. . . . . through competition.

  2. Jack Rivkin Well, I kind of wonder if it wasn’t for the success of Tesla Motors, would we have seen the BMW i3 or Hyundai Tucson Fuel Cell (among others) as quickly? Recall that General Motors killed its own EV program back in the 90s, in spite of the popularity of the vehicle. Imagine if GM had kept up their EV program since then? Maybe Tesla Motors would have been “just another EV maker” instead of “trend-setter?”

  3. Kind of a silly statement. BMW, Toyota, Suzuki and a number of car companies are really pushing the envelope on which technology or combination of technologies will be the future. Tesla is an experiment for all to see. Hope we get the breakthroughs needed on battery technology. Fuel Cells bear watching. Looks like that is the route Japan is going.  Lots of experimenting going on and has been for many years. Great Design, though! But never overestimate the value of a small company.

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