While several famous analysts like Jim Chanos continue to believe that Tesla Motors Inc (NASDAQ:TSLA) is burning a lot of cash in its ambitious acquisitions (SolarCity) and failing to meet its production targets, the Street is turning bullish on the electric car maker, especially after it posted a surprising profit for the third quarter of 2016 back in October. Tesla Motors Inc (NASDAQ:TSLA) earned $0.71 per share on $2.3 billion in revenue, while analysts had projected a per share loss of $0.54 on $1.98 billion revenue. The stock has gained over 14% since the start of 2017. As a result, investment firm Morgan Stanley last week increased its price target for Tesla Motors Inc (NASDAQ:TSLA) to $305 from $242 and also upgraded the company’s stock rating to ‘Equal Weight’ from ‘Overweight’.

Morgan’s analyst Adam Jonas is hopeful that Tesla Motors Inc (NASDAQ:TSLA) will add 75,000 units to Model 3 product line estimates for 2018 and an additional 100,000 units estimates by 2020. Adam Jonas is also incorporating “Tesla Network” or Tesla Mobility into the equation. Tesla Mobility is a car-sharing service which Elon Musk is allegedly planning to launch in the near future. Recently, Uber’s CEO Travis Kalanick, said that his company is ready to acquire over 500,000 Tesla’s self-driving cars given they come into the market according to the schedule. During an earnings call, Adam Jonas asked Elon Musk about Uber’s plan, and Tesla’s plans for car-sharing service. Musk was not quick to share the details about this project but it was clear that the ambitious CEO is up to something in this area.

The Trump Factor

Tesla Motors’ (NASDAQ:TSLA) CEO Elon Musk also seems to be in good terms with the new US President, Donald Trump. Elon Musk surprised everyone and joined Trump’s council of business advisers. He met privately with Trump’s top aides in the Trump Tower recently. Tesla believes in creating jobs in the country and has a tiny global footprint, just what Donald Trump wants. SpaceX builds rockets in Hawthorne, California. Tesla Motors Inc (NASDAQ:TSLA) makes its cars in Fremont, California, and recently opened a battery factory in Nevada, where it plans to add around 6,500 new jobs.

Tesla has also solved production issues with its Model X and problems with Model S, as the company recently hired Peter Hochholdinger from Audi as its VP Production to accelerate production.

Earlier this month, investment firm Baird also published a report about Tesla, calling it one of the best stocks to buy in 2017. Baird’s analyst Ben Kallo said that Tesla’s energy storage business and growth opportunity are not currently reflected in share prices. Kallo thinks that the demand for batteries is rising, which will bode well for Tesla Motors (NASDAQ:TSLA) in the future. The analyst also has high hopes from Model 3, Tesla Motors’s (NASDAQ:TSLA) much-awaited electric Sedan that will be up for sale in 2018.

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