Tesla Inc. is attracting "greater levels of enthusiasm" from investors thanks to its "demonstrated and perceived" technological dominance, analyst Adam Jonas at Morgan Stanley said in a note Tuesday. Jonas compared Tesla at $300 billion valuation, a milestone reached last week, with Apple Inc. at $300 billion, which the Cupertino, Calif., company crossed in early 2011, and Amazon.com Inc. at $300 billion, reached in late 2015. Tesla is a "significantly smaller company" than either companies were at the time, and Tesla's market-cap milestone reflects a "significant valuation premium" compared to when Apple and Amazon reached the same market value, he said. Tesla's revenue is less than half Apple's at the time of the $300 billion milestone, and 70% less than Amazon's at Amazon's market value milestone, Jonas said. Some S&P 500 index's market ratios are higher today, which explains some of the valuation premium for Tesla, he said. Tesla is scheduled to report second-quarter results on Wednesday after the bell, with Wall Street consensus calling for a loss. Some investors, however, remain hopeful the Silicon Valley car maker will surprise markets with a GAAP profit and be on its way to eventually join the S&P 500 index. Read More...
Tesla Inc. is attracting “greater levels of enthusiasm” from investors thanks to its “demonstrated and perceived” technological dominance, analyst Adam Jonas at Morgan Stanley said in a note Tuesday. Jonas compared Tesla at $300 billion valuation, a milestone reached last week, with Apple Inc. at $300 billion, which the Cupertino, Calif., company crossed in early 2011, and Amazon.com Inc. at $300 billion, reached in late 2015. Tesla is a “significantly smaller company” than either companies were at the time, and Tesla’s market-cap milestone reflects a “significant valuation premium” compared to when Apple and Amazon reached the same market value, he said. Tesla’s revenue is less than half Apple’s at the time of the $300 billion milestone, and 70% less than Amazon’s at Amazon’s market value milestone, Jonas said. Some S&P 500 index’s market ratios are higher today, which explains some of the valuation premium for Tesla, he said. Tesla is scheduled to report second-quarter results on Wednesday after the bell, with Wall Street consensus calling for a loss. Some investors, however, remain hopeful the Silicon Valley car maker will surprise markets with a GAAP profit and be on its way to eventually join the S&P 500 index.
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