Morgan Stanley analyst Adam Jonas is once again turning heads on Wall Street, this time by outlining a potential path for Tesla (NASDAQ: TSLA) to add as much as $1,000 per share through a largely untapped frontier: drones and urban air mobility (UAM).
According to Jonas, Tesla’s opportunity in the aerial vehicle sector could be transformative. Citing the firm’s global eVTOL/UAM model, Morgan Stanley estimates the total addressable market could reach $1 trillion by 2040 and balloon to $9 trillion by 2050.
If Tesla captures just a slice of that future market, Jonas projects a potential uplift of $100 to $1,000 per share, on top of Tesla’s current valuation.
Critically, the firm’s current $410 price target for Tesla does not include any valuation from the aviation segment, suggesting meaningful upside if the company formally enters the space.
“We note that our current $410 price target does not include any valuation for Tesla’s participation in the aviation market,” Jonas wrote on Wednesday June 4.
More on Tesla’s drone
While no public timeline has been confirmed for Tesla’s drone or eVTOL ambitions, the report implies that Tesla’s long-term strategy may position it as not only an EV and AI giant, but a stealth defense and aerospace contender as well.
With few U.S. peers actively pursuing this scale of commercial and military air mobility innovation, Tesla could benefit from first-mover advantages, especially as geopolitical and defense spending tailwinds grow.
As of June 4, Tesla is trading at $346.91 in pre-market hours, up 0.77%, following a modest 0.46% gain the previous day.
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