Morgan Stanley is bullish on the Tesla stock price, as anticipation builds ahead of the launch of Tesla's Model 3 car.
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MORGAN STANLEY: Tesla's Model 3 may be 10x safer than any car on the road today
Morgan Stanley is bullish on the Tesla stock price as anticipation mounts over Tesla's model 3.
FILE - In this Sept. 29, 2015, file photo, Elon Musk, CEO of Tesla Motors Inc., introduces the Model X car at the company's headquarters in Fremont, Calif. Tesla Motors customers will get enhanced radar and other features in an over-the-air software update that starts Wednesday, Sept. 21, 2016. The update makes the Model S sedan and Model X SUV more reliant on radar than cameras when driving in Tesla's semi-autonomous Autopilot mode. Teslas made after October 2014 have radar. (AP Photo/Marcio Jose Sanchez, File)
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A note out March 23 by a group of equity analysts at the US bank said the car, which is set to launch in mid-2017, will be far safer than the market is expecting.
"You don't put a liquid cooled supercomputer in every car to make it twice as safe as other cars," the bank said."We believe these cars will be far safer than that."
"We think the Model 3 will feature hardware and software that provide a level of active safety that could significantly lead all other cars on sale today and, if the company achieves its goal, be an order of magnitude (I.e. 10x) safer than the average car on the road," the bank said.
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That could set the automaker apart in an industry in which "safety is the number 1 determinant of car purchases."
In addition, Morgan Stanley expects Tesla's 5 million miles per day to double over a 15-month time period.
The bank has a price target for the automaker at $305 per share, above the firm's current $250.68 stock price.
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