Power Lunch

Monday - Friday, 2:00 - 3:00 PM ET
Power Lunch

New Tesla business model? Not so fast: Analyst

Jackson Burke
Tesla gets a boost

Shares of car maker Tesla rose over 4 percent Monday after Morgan Stanley's Adam Jones released a research note that raised the price target 66 percent to $465. The note argues that the auto industry is going to change drastically in the next few years, and that "Tesla may be uniquely positioned to dominate."

According to Jones, the current auto industry functions under "a 100-year-old business model of human-driven, privately owned, internal combustion vehicles," and that "this is fundamentally changing." In its place, a "shared mobility model"—shared cars that are enhanced with smart technology and autonomous driving capability.

The note claims "it is the view of the Morgan Stanley global auto team that Tesla may be best positioned to advance the state of the art in shared autonomy" and that "we would be surprised if Tesla did not share formalized business plans on shared mobility within the next 12 to 18 months."

Read MoreIs Elon Musk going to turn Tesla into the next Uber?

But if you're hoping to purchase your new autonomous car in 2016, you may want to manage your expectations, says Ivan Feinseth, Chief Investment Officer and auto analyst with Tigress Financial Partners.

"I like Adam's enthusiasm for the company. I don't share his enthusiasm for the stock price. I also am very excited for computer-driven cars. However, I think that this technology is at least 5 years or greater [away] before we see it on the cars we can then purchase," Feinseth said in an interview with CNBC's "Power Lunch."

Read MoreTesla CEO Musk unveils Model S upgrades

Feinseth also suggested an alternate explanation for investors' optimism for Tesla—their recent success in raising capital.

"I think the stock's up today because they closed the financing for an amount great than they originally wanted to go to market for. I think that's also positive because making cars is a very capital intensive business, so people may have concerns that the company could run out of money. So the fact that they've been able to consistently raise more and more money is positive."