Bud Fox News has learned that on Monday, August 17, Morgan Stanley accidentally published a laughably optimistic equity research report on Tesla Motors (price target $465 vs $218.87 today) that was written by analyst Adam Jonas. The 39-page tree-killer was actually a homework assignment for the Science Fiction & Fantasy Writing class that Jonas is taking at the Gotham Writers’ Workshop. According to the course description:
Whether extrapolating science into futuristic technology or conjuring new forms of magic, these genres imagine what might have been or what might be, opening the door to any possibility.
Jonas’s report does indeed open the door to any possibility, to wit: the fantastic price target is based on how much a currently non-existent division (direct-to-consumer ride sharing), which the company in no way has suggested it’s creating, might be worth in the sci-fi worthy world of 2029, by which time one hopes that analytical robots will have replaced investment-banking-compromised human equity analysts for the benefit of investors everywhere. On the company’s 2Q earnings call, Tesla CEO Elon Musk wouldn’t even entertain a question about what has become Jonas’s entire investment thesis: Continue reading