A JP Morgan analyst hits Tesla Motor Inc. (NASDAQ:TSLA) where it hurts

A group of engineers based in California, founded Tesla Motors Inc. (NASDAQ:TSLA) in 2003. Their main goal was to prove that electric cars were the wave of the future.

One of the main goals of Tesla Motors Inc. (NASDAQ:TSLA) is to make the general public aware that there is an alternative to petroleum based motor transportation. Only the most up-to-date technology is used in designing and manufacturing these electric cars.

Today, Tesla Motors Inc. (NASDAQ:TSLA) still has its home office in Palo Alto, CA with more than 125 service areas and stores worldwide.

After a JP Morgan analyst gave a projected expectation of the corporation, the shares of Tesla Motors Inc. (NASDAQ:TSLA) dropped more than 3.5%, which related to just over $250.00 per share. Other analyses have set a target price on the other opposite side of the scale, reaching $300 to $400 per share within the next 14 months.

According to JP Morgan, Tesla Motors Inc. (NASDAQ:TSLA) will not be able to deliver their target goal of 100,000 cars by the end of 2015. Tesla Motors Inc. (NASDAQ:TSLA) has a projected goal to deliver 500,000 automobiles by 2020, but the analysis from JP Morgan believes they will fall short of this goal by approximately 200,000.

On a positive note, the JP Morgan analyst appreciates the elegant and sleek design of the Tesla automobiles, the employee benefits that the company offers and the efficiency and courtesy of team members. But even with all these positive attributes, it still seems that the analyst from JP Morgan does not think that Tesla electric cars will be in high demand, which is why this particular analyst has set a low price.

The competition for Tesla Motors Inc. (NASDAQ:TSLA) is low, but the question still remains as to how large is the market for high-end vehicles that are powered by electricity? There is the risk that this niche may remain very exclusive for a long time and reserved for techies that have money to burn or car enthusiasts that must have an electric vehicle in their collection.

It has been said by Patrick Archambault, a Goldman Sacks analysis, that if Elon Musk, CEO of Tesla Motors Inc. (NASDAQ:TSLA), wants to be as popular as Ford Motors and Apple Computers, then the electric motor car company will have to produce between two and three million vehicles a year by the time the year 2025 rolls around.

The shares may have dropped 2% by the closing bell Friday, September 20^th, but Tesla Motor Inc. (NASDAQ:TSLA) who went public on June 29, 2010 was trading at $245.22 at this mornings’ opening bell and at 2pm, the stock is at $249.35. The 52 week outlook ranges from $116.10 to $291.42 dollars per share. The stock market cap is 30.90 B with the inst. ownership at 55%.

Even in the wake of this one negative review and analysis, Tesla Motors Inc. (NASDAQ:TSLA) is still trading at a gain of more than 65% since the beginning of 2014.