Morgan Stanley Reports on Tesla Motors

Morgan Stanley commented on Tesla Motors TSLA in a report released today. In the report, Morgan Stanley was positive in its assessment of the company. Morgan Stanley writes, "Capital raise helps de-risk the story. The biggest risk for Tesla is exhausting available liquidity before they can ramp volume production. By raising $40-90 million more than the $150 million we had in our model, we estimate Tesla could withstand an additional 3-6 month delay in Model S. Management intends to use the proceeds to accelerate development of the Model X crossover SUV. The company plans to show a prototype of the Model X by the end of 2011, with commercial introduction by 4Q13, around 2 quarters earlier than we forecast. Management reiterated Model S deliveries are on track for mid-2012. Tesla provided capex guidance through the next 7 quarters that implies 2012 spending around $50m higher than our forecast, consistent with its plans for an earlier model X launch than we have expected." Morgan Stanley currently has an Overweight rating on Tesla. Shares of TSLA closed at $28.98 yesterday, up from $26.90 at the opening bell.