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Here’s why Tesla’s stock price is surging today

Tesla Annual MeetingTesla Annual Meeting
Elon Musk, CEO of Tesla.Photograph by Noah Berger — AP

Shares of Tesla Motors surged Monday morning after a Morgan Stanley analyst note said the company’s stock could nearly double in value.

According to MarketWatch, the Morgan Stanley note spoke glowingly about the electric car company’s potential as a leader in the market for self-driving vehicles, while also predicting that Tesla (TSLA) could eventually develop “an app-based, on-demand mobility service” that would put the company’s development of self-driving car technology into the ride-sharing market. Morgan Stanley expects that Tesla could announce plans for a shared mobility app within the next 12 to 18 months.

The analyst note raised Morgan Stanley’s (MS) price target for Tesla by 66%, from $280 to $465, which is more than 90% above the company’s Friday closing price.

Tesla is already close to introducing certain self-driving features in the version 7 of its Model S cars. Last month, Musk hinted at those features in a tweet that said the company was “almost ready to release highway autosteer and parallel autopark software update.” Musk, however, did not attach a specific timeframe to the project or explain what he meant by “almost.”