Few companies have received as much hype, or as rich a valuation as Tesla recently. Investors seem fully committed to the notion that tesla will be a massive auto company, as its valuations is already on par or higher than Ford and GM. However, Morgan Stanley is bearish, with analyst Adam Jones arguing that the company is going to have a host of issues scaling up. One of the most important new factors he mentions is that Tesla may have trouble expanding overseas. For instance, he contends that Germany—where 1 in 7 jobs is tied to the auto industry—will not simply just let Tesla flood its streets with cars.
FINSUM: We think Tesla is going to have some ups and downs and some trouble scaling its operations, but we do truly believe it will be one of the next great American companies. We are encouraged by Musk’s recent announcement of the company’s entrance in the semi-truck business (and the demonstrated demand he cited).