Two myths dispelled in one morning

Myth 1: Tesla does no marketing. In fact, it just hired June Jin to head China marketing.

June Jim TeslaMondoMyth 2: Morgan Stanley has four hooves and trips all over itself to boost Tesla. In fact, today MS analyst Adam “Jones” Jonas writes that while Tesla does indeed deserve a $320 price target, it’s not coming tomorrow, and we’re likely headed for a patch of turbulence in the short term. Contrary to reports in Seeking Alpha and The Street, Jonas does not back off his target. He does point out Tesla’s challenge in meeting explosive demand in China. That’s ironic, considering the marketing hire above, and it’s surely the lesser of the two evils, the greater being lax demand. He also asks an interesting rhetorical question about the distant future:

Adam Jonas TeslaMondo

It’s a macro concern, of course. Every automaker will be equally affected by a move toward cars as transport pods. We’ll be a lot older, and TSLA shareholders a lot richer, before the auto landscape really changes. And even in the long interim period, with autopilot systems giving way to autonomy, but before cars become a mere service, your car will still be YOUR car. Acceleration and handling might take a back seat, but range, style, connectivity, brand image, ride quality, convenience features and creature comforts will still play. Rather like a sit-in smartphone with wheels. Sounds like something Tesla, the tech innovation company that leaves elephantile automakers flatfooted, could build quite well. And while we’re talking about decades from now, Tesla the clean energy storage company will be printing money. Tesla CTO J.B. Straubel: “I’m pretty bullish that stuff can actually scale faster than the car market.”

Tagged , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s