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

August 17, 2015, 4:24 PM UTC
Tesla Annual Meeting
FILE - In this April 30, 2015, file photo, Tesla CEO Elon Musk speaks with members of the media at Tesla's headquarters in Palo Alto, Calif. Musk says the company expects to start deliveries of its new SUV, the Model X, in three or four months. He told investors at the company's annual meeting Tuesday, June 9, 2015, that he's test driving the Model X now. (AP Photo/Noah Berger, File)
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.”