Adam Jonas: Why Tesla Stock Is Worth $465

In a report published Monday, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Tesla Motors Inc TSLA, while raising the price target from $280 to $465. The analyst believes that the company is well positioned to play a leading role in the revolution towards shared mobility.

With 10 trillion vehicle miles being driven annually, the race for which company can capture the most miles and the price at which they can do so is on. According to the Morgan Stanley report, firms like Tesla Motors that have "expertise in autonomous tech and networked machine learning can exploit the inefficiencies in the current model."

Shared mobility is essentially a shared transport model that is empowered by smart technology that enables higher vehicle utilization, which in turn helps overcome the "poor payback economics of electric vehicles (EVs)," Jonas explained.

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This is where the company's on-demand, app-based mobility service, Tesla Mobility, comes into play. In fact, the analyst expects Tesla Motors to share the details of its formalized business plans, related to shared mobility, within the forthcoming 12-18 months.

"This could potentially be followed by commercial introduction in 2018, shortly after the launch of the Model 3, which we think could form the backbone of a possible Tesla Mobility 1.0 urban transport PODS (Position on Demand Service) in 2018," the Morgan Stanley report stated.

The analyst believes that this business opportunity has the potential to even triple Tesla Motors' revenues by 2019, driven by selling cars as well as miles, given that "100% of Tesla's cars are electric, connected, and able to "learn" through over-the-air firmware updates at any time. No other established automaker can claim this today," Jonas mentioned.

"In addition, Tesla is developing a vast proprietary, company-owned charging and service infrastructure– ostensibly to service its current product offering, but well positioned for fleet management in a shared mobility model," the Morgan Stanley report added.