Tesla Analyst Speculates Potential Entry into $9 Trillion Drone and eVTOL Market by 2050

Morgan Stanley analyst Adam Jonas believes Tesla could enter the $9 trillion drone and electric Vertical Take-Off and Landing (eVTOL) vehicle market by 2050. Jonas bases his speculation on Elon Musk’s recent comments about electrified aircraft and boats, which hint at Tesla's potential expansion into new transportation sectors.

Tesla Stock Could Surge by $1,000 if Company Enters $9 Trillion Drone and eVTOL Market, Analyst Says

Adam Jonas, an analyst at Morgan Stanley, is renowned for his optimistic investment notes on Tesla. These notes are frequently replete with speculative ideas that are the foundation for his optimistic revenue projections for the electric vehicle (EV) industry leader. Jonas' most recent note indicates that Tesla stock has the potential to increase by $100 to $1,000 per share, contingent upon the existence of a yet-to-be-established line of business.

Jonas bases his conjecture that Tesla could soon enter the $9 trillion Total Addressable Market (TAM) for drones and electric Vertical Take-Off and Landing (eVTOL) vehicles by 2050 on two developments. Initially, he cites a post on X (formerly Twitter) that underscores the substantial discrepancy in drone production between the United States and China. According to the post, China can produce the same quantity of drones in a single day, whereas the United States currently produces approximately 20,000 drones annually. Upon reading the post, Elon Musk replied, "Yeah, it's not even close."

Musk Hints at Electrified Aircraft, Analyst Predicts Tesla's Potential Entry into Drone and eVTOL Markets

Jonas also references Musk's statements during Tesla's Q2 2024 earnings call, in which Musk declared that "the world is on the brink of fully electrified transport, including aircraft and boats in addition to cars."

This comment continues Musk's previous "passing mentions" of an electric aircraft during Tesla's 2020, 2021, and 2023 investor days.

According to Wccftech, Jonas posits that Tesla's stock could experience a significant increase in value, with the potential increase ranging from $100 to an astonishing $1,000 per share, if the company were to enter the drone and eVTOL markets. Nevertheless, Jonas has not incorporated this hypothetical new business venture into his current Tesla stock price target of $310 per share.

It is essential to mention that Jonas initially suggested that Tesla could expand into the drones and eVTOL sector in 2021, stating that it was a matter of "when," not "if," due to the economic rationale behind such a move. Nevertheless, this is speculative now, as Tesla has not implemented any tangible initiatives to enter this market.