Investors Are Asking If Tesla Can Be More Than Just A Car Manufacturer

After reporting solid Q4 deliveries, the stock went on a tear on Tuesday.

Morgan Stanley's Adam Jonas who has an overweight rating on the stock, cranks up the argument in favor of Tesla another notch.

In a new note he says investors are beginning to seriously ask if Tesla can be much more than a car manufacturer.

From Jonas:

"Tesla's plans for a 'Giga' battery factory starting to get more attention as a call option on the economics of mass produced batteries and the business model. We found the final sentence of Tesla's prepared remarks on its plans to build the world's largest lithium ion battery factory intriguing: "It is a massive, massive opportunity to push the cost curve down to levels people haven't even dreamed of yet." We find investors are starting to seriously ask if Tesla can be much more than just a car manufacturer.

"If this company can establish a technological and scale lead in every storage and infrastructure, might we one day look back at Tesla's humble beginnings as a car maker much as Amazon began as a book seller?."

Still there are many that question the green automaker and the role that the sale of zero emission vehicle (ZEV) credits has on it's revenue, and that point out, that in terms of just car sales the automaker has a long way to go.