Tesla Is World's Most Important Auto Maker, Says Tesla Debt Underwriter

Derek Kreindler
by Derek Kreindler
We’re committed to finding, researching, and recommending the best products. We earn commissions from purchases you make using links in our articles. Learn more here
tesla is world s most important auto maker says tesla debt underwriter

A recent research note from Morgan Stanley dubbed Tesla the “world’s most important auto maker”, on account of its innovation in the area of electric vehicles, autonomous cars and connectivity. Could there be another reason for such enthusiasm?

Observers will remember that earlier this year, Morgan Stanley raised its share price for Tesla to $320 per share, amid talk of Tesla disrupting the energy sector with is new battery-producing gigafactory. One day after that, Tesla announced a $1.6 billion debt offering underwritten by…Morgan Stanley.

In the case of the $320 share price target, analyst Adam Jonas was wildly optimistic about Tesla, even suggesting that the company could help bring about a “utopian society” by 2026. Jonas is also the same analyst labeling Tesla as the most important car maker…in the wuurrlld.

Coincdence? A massive breach of the Chinese Wall? Or a symptom of a press corp that is near-universal in its reluctance to “disrupt” Tesla’s brilliant PR narrative (hip, successful entrepeneur from Silcion Valley looking to topple one of Industrial America’s most sclerotic, antiquated industries)? Likely a combination of all three. Or, tell me why I’m wrong in the comments.

Derek Kreindler
Derek Kreindler

More by Derek Kreindler

Join the conversation
9 of 71 comments
  • Akatsuki Akatsuki on Jun 23, 2014

    I thought this axe grinding was going to end with the changes at TTAC. Frankly TTAC has had a horrible track record with Tesla and can't just seem to let it go. Is Tesla the most important car company out there? From an innovation and aggressive strategy context - absolutely. They have bypassed the traditional strictures preventing electric cars including setting up their own charging network. They have bypassed the almost universally consumer-hated dealers (who are a big portion of your readership given the massive pandering that goes on here and which, I suspect, is the real reason for these articles). And they are planning to bring out a very affordable electric car that may represent the biggest and most credible effort yet. If you want to bet against Elon Musk, you are taking long odds as this is a guy who has delivered time and time again on very outlandish ideas.

    • GiddyHitch GiddyHitch on Jun 23, 2014

      "I thought this axe grinding was going to end with the changes at TTAC. Frankly TTAC has had a horrible track record with Tesla and can’t just seem to let it go. Is Tesla the most important car company out there? From an innovation and aggressive strategy context – absolutely." Stockholm syndrome. Yesterday I was talking to an executive in Germany about cars and he mentioned that if he got a new car, it would be an American car. I was bordering on apoplectic when he clarified that he was referring to Tesla and I responded, "oh, that makes sense."

  • Ronnie Schreiber Ronnie Schreiber on Jun 23, 2014

    For all of Tesla's "disruption", the company is staffed primarily by people who worked for other automakers. They still have an office in the Detroit area with about 2 dozen engineers.

    • See 1 previous
    • Z71_Silvy Z71_Silvy on Jun 23, 2014

      @Hillman But the product would probably be better.

  • 3Deuce27 3Deuce27 on Jun 24, 2014

    I could tell you Derek, but I doubt you would still get it given your staked out position on the subject, but I will tell you this... It has nothing to do with 'Tesla versus the OEM's'. As far as the Morgan Stanley hype...hey! Its capitalism in America...No matter what... Sell! Sell! Sell!

  • Big Al from Oz Big Al from Oz on Jun 24, 2014

    Telsa isn't the future without significant government support. ICE engine will reign as the predominant source of motive power for at least the next several decades and longer. How much lithium is there to mine cheaply and easily. Morgan Stanely are taking a gamble. Remember how much cheap and easy money there sloshing around is out there and how much of this cheap and easy money is not invested wisely. Yellen will keep that money coming, investment houses are addicted to the stuff. Even the EU is heading down that road with the Japanese. The money must be spent.

    • See 1 previous
    • Dr. Kenneth Noisewater Dr. Kenneth Noisewater on Jun 24, 2014

      @Vulpine Or, Nevada: http://www.rgj.com/story/news/2014/04/06/tesla-factor-recharging-nevadas-lithium-industry/7354627/ "Although the bulk of the world's lithium supply comes from countries such as Chile and Argentina, proponents of a domestic industry say Nevada is no slouch. Western Lithium claims the Humboldt County site's deposits represent the fifth-largest lithium resource in the world. The Nevada Governor's Office of Economic Development says the state's overall lithium portfolio is even bigger. "Nevada is lithium rich — second only to the size of deposits found in Chile," said Steve Hill, executive director of the Governor's Office of Economic Development." "As fuel supplies shrink, military services are going to be hoarding it so they can operate when electric sources get knocked offline." If things ever get that bad, the military can just Fischer-Tropsch coal.