Updated from 10:53 A.M. to include information about safety in the fourth paragraph.NEW YORK ( TheStreet) -- Tesla Motors (TSLA - Get Report) shares gained 0.68% to $148.86 as Stifel Nicolaus initiated coverage on the stock, rating it a "hold."
However, much of the recent run up in the stock is attributed to short-squeezes, future production and momentum, as well as fundamental shift in the automotive industry. As such, Albertine believes the company's valuation "deserves a deeper, broader fundamental analysis." He notes, "Any investor, sell-sider or otherwise bystander focused on the Model S, X or Gen III is missing the bigger picture, in our view. Our long-term sensitivity analysis provides a mechanism to assess TSLA's earnings power beyond products, pricing or penetration, and perhaps provide a deeper dive on battery costs, regulatory credits, gross and operating margin potential." Tesla recently filed to patent the name Model E, perhaps the name of the third-generation vehicle. The filing notes "The description provided to the USPTO for MODEL E is Automobiles and structural parts therefor." As the momentum behind Tesla continues to be a tailwind, and the company continues to raise money to further build out its operations, Tesla is increasingly looking like it's going to be a self-sufficient automotive company. On the second-quarter earnings call, Musk said some of Tesla's suppliers simply can't boost production fast enough to meet demand and that it might look to bring some stuff in-house. "90% of our suppliers are able to ramp-up and 5% have some difficulty and 4% have a lot of difficulty and 1% just can't and so we have got to replace those or in-source those items," Musk said on the call. "You can't give people a car that's 99% complete, unfortunately and there are several thousands unique parts in the car." With the wind at its back, and the company increasingly getting more positive momentum behind it, Albertine notes Tesla has a chance to do something the automotive industry has never seen before. "In our opinion, no other disruptive force has had as much potential as TSLA looking back over the 100-plus year old auto industry. Simply put, we believe TSLA is seeking 'Automotive Nirvana'." -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia