Tesla surges 5% premarket as Morgan Stanley raises price target 66%

Telsa Motors Inc. shares surged about 5% in premarket trade Monday, after Morgan Stanley raised its price target on the shares by 66% to $465 from $280, and said the company is uniquely positioned to dominate in the emerging world of autonomous technology and driving. The business model of human-driven, privately owned, internal combustion vehicles is fundamentally changing, analysts wrote in a note. "Given the pace of technological development both within Tesla and at rival technology and mobility companies, we would be surprised if Tesla did not share formalized business plans on shared mobility within the next 12 to 18 months," they wrote. That could be followed by a commercial launch some time after the launch of the Model 3 and could form the basis for a Tesla Mobility 1.0 urban transport PODS (Position on Demand Service) in 2018, said the note. "We view this business opportunity as potentiallyadditive to Tesla's existing model of selling human-driven cars to private owners and see potential for this model to conceivably more than triple the company's potential revenues by 2029. That is, selling miles in addition to selling cars," said the note. Tesla shares have gained 9.3% in the year so far, while the S&P 500 is up 1.2%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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