Tesla’s CEO Elon Musk has been dropping hints about the company’s potential entry into the aviation sector, and Morgan Stanley analyst Adam Jonas believes these breadcrumbs point to a significant opportunity for the electric car giant.
During Tesla’s second-quarter earnings call, Musk highlighted the world’s shift towards electrified transportation, extending beyond cars to include aircraft and boats. This, coupled with his recent comments on the U.S.’s limited drone-making capacity compared to China, has led Jonas to believe that Tesla is seriously considering entering the aviation space.
While Jonas currently has a price target of $310 for Tesla stock, this does not factor in the potential impact of an aviation expansion. However, he believes that Tesla’s entry into the eVTOL (electric vertical takeoff and landing) or drone market could significantly boost the stock price, adding an extra $100 to $1,000 per share. This valuation reflects the massive potential of these emerging markets.
Tesla’s strategic shift towards becoming an AI and robotics company is evident in its efforts to develop robotaxis, humanoid robots, and autonomous driving technology. The company recognizes the immense growth potential in these fields, and aviation could be a natural extension of its vision.
Tesla is slated to unveil its dedicated robotaxi on October 10th, an event originally planned for August but postponed to allow for further refinements and preparation for additional product unveilings. The company’s focus on these advanced technologies further strengthens Jonas’s belief in Tesla’s potential aviation ambitions.
Tesla’s stock closed up slightly on Monday, continuing its upward trend for the year. As the company continues to push boundaries in the automotive and technology sectors, its potential entry into aviation could be a game-changer, not only for Tesla but also for the future of transportation.
