By Dhirendra Tripathi
Investing.com – Tesla (NASDAQ:TSLA) shares fell 1% Tuesday on a report that predicts a $5,000 electric vehicle in the future.
Morgan Stanley (NYSE:MS) analyst Adam Jonas reiterated an overweight rating and $880 price target on Tesla, saying high volume production of electric vehicles could eventually lead to price cuts.
Investors already watch price cuts by Telsa and other EV carmakers, something Jones says should continue "through at least the next decade." Based on his discussions with carmakers, suppliers and domain experts in the EV business, "we would not be at all surprised to see the prices of many EVs eventually fall to below $5k/unit," the analyst wrote in a note, according to StreetInsider.
But the current movements in Tesla's stock continued to defy the rosy predictions. The stock currently trades at $703.
According to StreetInsider, Jonas highlighted the historical impact of manufacturing efficiencies in the early auto industry and predicted this type of high-volume manufacturing revolution can occur in EV production. "Investors should prepare for this moment," he said.
Global Equities Research analyst Trip Chowdhry has argued that Tesla has a “generational lead in battery technology.”
As a result, the new model is reducing the price per kilowatt-hour by 56% and production costs by 69%, StreetInsider quoted him as saying.
According to Chowdhry, Tesla's semi truck production is also "firming up."