Tesla Gets More Love From Morgan Stanley

In a note released Wednesday morning, Morgan Stanley analyst Adam Jones came out bullish on Tesla's (NASDAQ: TSLA) Model X saying it has the potential to be "far more successful" and a "much better value" than the Model S.

Jones commented, "Some in the market have described Tesla as a 'one hit wonder' with the Model S. We expect the Model X will put that to rest very, very quickly... We'd be disappointed if the Model X did not sweep every major Car of the Year award on off by the automotive media."

Not to take anything away from the Model S, Jones noted it was a historically important vehicle that has allowed the company to learn valuable lessons. The Model S has also helped to open doors to key suppliers who had previously refused to work with Tesla.

Similar to the Model S, Jones does not "at all" expect the Model X to sell on fuel economics. Instead, he said it will sell on its cool features and driving pleasures including acceleration, handling, upgraded infotainment system, falcon door feature, and comfort.

Currently, Jones is modeling the Model X to surpass the Model S in volume by 2018, but said it is "certainly possible" that this could happen by the end of 2016.

The only negatives Jones mentioned is that the company delayed the commercial launch of the Model X by six to nine months into 2014 and has yet to begin test on Alpha and Beta prototypes. However, he believes the delay, which is due to styling revisions, is a good thing and pointed out that Tesla announced last week that Alpha and Beta tests will begin in a matter of days.