Motoring On

Talk about a new car smell. A simple upgrade over at Morgan Stanley, and shares of Tesla Motors are off to the races to the tune of 16% in early trading.

And the options market sees even more gains to come.

Early this morning, one investor bought nearly 3000 of the Tesla June 30-strike calls for $2 a piece, a bet that doesn't pay off unless Tesla stock trades above $32 by June expiration, an 18% move. The exuberant Morgan Stanley analyst gave it a $70 price target.

But others are less than impressed.

"It's absurdly overpriced," said Capstone Investment's Carter Driscoll, the only analyst on Wall Street who rates Tesla a Sell.

Driscoll points out that electric vehicle adoption rates will be lower than people think given the state of the consumer.

Still, it's hard to argue with a good story.

"At the end of the day, it's a stock people want to like," Driscoll adds.

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