Tesla Motors Inc (TSLA): The End For Electric Vehicles?

electriccarTesla Motors Inc’s (NASDAQ:TSLA) bonds may be “junk” but don’t call its stock that to Morgan Stanley.

On the very same day Standard & Poor’s rating services slapped Tesla’s debt with a B- (or junk) rating, Morgan Stanley’s Adam Jonas was singing the company’s praises in a research report titled, “EVs are Dead, Long Live TSLA!”

In it, Jonas dismissed the whole electric cars phenomenon but said Tesla is different than other “EVs.”

“Tesla’s true success is making compelling performance vehicles that just happen to be EVs,” wrote Jonas. “A true democratization of EVs? We don’t even expect the Gigafactory to turn that optionality into a reality anytime soon. We’ll never know… but we believe if the Model S had 2xthe battery range but was unexciting to drive, it would be far less successful than it is today. To be a winner, the Gen 3 must first and foremost be an absolute riot to drive. Electric range comes second.”

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