Tesla 'Better Positioned Than Most' To Lead The Auto Industry To Shared Mobility

Morgan Stanley's Adam Jones  on Monday raised his price target for Tesla Motors Inc (NASDAQ: TSLA) from $280 to $465. He believes that Tesla's recent spending habits indicate that the California company is aggressively developing autopilot technology that could help it pave the way for an automated, shared mobility model of driving that could disrupt the auto industry and solve many of its inefficiencies.

"The human-driven, privately-owned, internal combustion [vehicle]" will soon be a thing of the past, Jones suggested, and thinks Tesla will be the one to put it there.

Benzinga followed up with Stifel analyst James Albertine to get his thoughts on the company.

Related Link: Adam Jonas: Why Tesla Stock Is Worth $465

Asset Utilization

Albertine highlighted problems of low asset utilization within the automotive sector that he says exist worldwide -- cars spend too much time sitting in lots instead of on the road. According to the analyst, it is still unclear whether a single firm will lead the charge to combat this problem or whether it will be a more collective effort.

However, Albertine did say that Tesla is "uniquely positioned" to help address the inefficiencies within the auto industry, "given that it's not entrenched...in any one set of methods or supplier relationships."

While Albertine doesn't necessarily think Tesla will single-handedly move the sector toward shared mobility, he does think that there is a substantial chance that the electric car maker "is a key participant in helping to achieve the utopian ideal of shared mobility globally. I think they're as well positioned, if not better positioned, than most."

Albertine has a Buy rating on Tesla with a $400 price target. Shares closed up nearly 5 percent at $254.99 on Monday.