JPMorgan: Tesla Motors shares could double to $50 in the next 3 years

Tesla Model S

Tesla Motors stock could double to $50 over the next three years, that’s what Himanshu Patel says – an analyst at JPMorgan. After Patel’s note, Tesla’s stock increased more than 7 percent.

“We continue to believe the majority of the investment community (and the majority of the automotive industry) is substantially underrating Tesla’s potential,” Patel wrote in a research note.

Patel said that Tesla’s shares could reach $40 to $50 in the next three years as the company could eventually become a premium automaker with a full line of electric-vehicles with a lower cost structure than its competitors.

Tesla Motors recently confirmed that it plans to launch the Model S electric sedan in mid-2012 followed by a crossover known as Model X. It also has plans to build an affordable electric family sedan that will be prices below $30,000.

– By: Omar Rana

Source: Reuters