Tesla Motors Inc. (NASDAQ:TSLA) big announcement about an all-wheel drive car with autonomous driving features could not prevent the stock from sinking as the entire auto industry continues to be crashed. During an interview on CNBC, Morgan Stanley analyst, Adam Jonas, downplayed suggestions that there is need to be concerned about the company’s future prospects.
“We are pretty impressed actually I think the share price reaction is just a bit of a catchup. The whole broader market has been crashed here, and Tesla was being held because of this excitement around the announcement. If you look at the substance of the announcement, there is some pretty astonishing things going on, “said Mr. Jonas
Some people are already arguing that there is nothing new about Tesla’s new invention that can clock high speeds of 60Mph in a matter of 3.2-seconds at the back of 700 horsepower. Many people would argue that this was the only logical upgrade that Tesla could have done with an upgrade
Jonas, on the other hand, argues that Tesla Motors Inc. (NASDAQ:TSLA) is not purely an electric car play, but a manufacturer focused on developing souped-up, exciting cars with high-performance capabilities.
“Tesla basically went from last place to first place in terms of autonomous driving features like the spot-pilot where you can get out of the car and it parks itself while you are standing on the side watching. Some pretty innovative stuff and it is just the beginning as these cars have the ability to learn and make over the air correction, “said Mr. Jonas.
Jonas expects the newly launched model to command impressive demand from the wealthy class who are mostly driven by fun and safety when buying new cars. The analyst also believes that Tesla Motors Inc. (NASDAQ:TSLA) remains strategically positioned as the best software engineering auto company.
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