Morgan Stanley analyst Adam Jonas on March 31, 2011, explaining why he was upgrading Tesla stock to “overweight” status and projecting sales of $9.5 billion by 2020, and declaring Tesla to be “America’s Fourth Auto-maker”:
The confluence of structural industry change, disruptive technology, changing consumer tastes and heightened national security creates an opportunity for significant new entrants in the global auto industry. California dreaming? We don’t think so. In our view, the conditions are ripe for a shake-up of a complacent, century-old industry heavily invested in the status quo of internal combustion. The risks are high. So is the opportunity. Enter Tesla.
That was then. Today the same Adam Jonas of Morgan Stanley slashed its estimate on Tesla and downgraded the stock to “underweight” status, saying electric vehicles are “not ready for prime time.”
The stock is in a swoon.
Yes, Morgan Stanley was an underwriter of the IPO.