Morgan Stanley Analyst's Car Shopping Experience Showed Him How Similar Tesla Is To Amazon Prime

Morgan Stanley analyst Adam Jonas on Wednesday recounted his experience of buying a new vehicle and noted the advantages possessed by Tesla in owning their own stores.

The Tesla Analyst: Jonas maintained an ‘overweight’ rating on Tesla with a price target of $200.

The Tesla Thesis: The analyst said that to procure his new vehicle which was in short supply, he had to consider multiple dealers who were charging above the sticker price. The analyst eventually bought the vehicle at a price equal to the MSRP, but not without hassle.

However, with Tesla, all consumers pay the same price for the vehicle within the same region, the analyst noted. There is no different pricing across stores marking a difference between the traditional car buying experience and the Tesla buying experience, Jonas added.

“Tesla’s ability to own its own stores to make the shopping experience as easy as Amazon Prime while having the ability to ‘stack retail’ on the downstream recurring revenue, used, and parts/ service revenue is the single most underappreciated advantage Tesla has over its legacy competition,” the analyst said.

Tesla Price Action: TSLA shares closed up 1.47% at $224.57 on Wednesday and fell 0.65% in after-hours trading, according to data from Benzinga Pro.

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