Time To Look At Tesla Motors? (TSLA)

Shares of Tesla Motors TSLA may be up 2.6% today, but there may be much larger gains in the shares future, especially considering the large short position in the name. There is a 7.9 day to cover ratio on Tesla, at the average daily volume of 1.4 million shares. If shares can get above the March 31st volume weight average price (VWAP) at $26.70, then the stock could gap up significantly. Morgan Stanley put out a research report on Tesla last month with a $70 price target, calling it America's fourth automaker. Morgan Stanley has an Overweight rating on shares of the California-based automaker. In the report Morgan Stanley said, "xEV market entering higher volume and it's happening right now: We are convinced electric cars will comprise a significant minority of global light vehicle sales medium-term and the majority longer term. Our global xEV model suggests penetration of 5.5% globally by 2020 and >15% by 2025. Even on our forecasts, the Internal Combustion Engine (ICE) remains by far the dominant form of propulsion for a very long time." At last check, shares of Tesla were up $26.42, a gain of 67 cents on the day.