Tesla (TSLA) Gains as Attention Shifts, Regulatory Impact Expectations Ease (GM) (F)
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Price: $144.68 +1.85%
Rating Summary:
22 Buy, 28 Hold, 13 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
22 Buy, 28 Hold, 13 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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When it comes to Tesla Motors (Nasdaq: TSLA), no news is (usually) good news.
In this case, that axiom holds up well. Shares of Tesla have risen nearly 20 percent in December, following a 35 percent for the two-month period ending November 2013. During that period, Tesla was rattled with reports of fires in the company's flagship Model S automobile.
Following the fires, which occurred in October, the Nationals Highway Traffic Safety Administration opened a probe into the company. The event pressured Tesla shares for the better part of November.
Investors and analysts are now expecting a subdued impact from the move. Dougherty & Co.'s Andrea James recommends buying the stock now just on lower U.S. litigation prospects, but expectations of strong sales in China.
Barclays Brian Johnson agrees (he has a Hold rating on Tesla) and noted that Tesla's plan for a lower-cost vehicle to launch in 2016 is on track. Tesla will be holding a press event at the North American International Auto Show (NAIAS) in Detroit, Michigan, next month, and plans to debut its next-generation vehicle sometime in early 2015.
Two other automobile industry-related events shifting the limelight away from Tesla are the ongoing debate of whether or not Ford's (NYSE: F) Alan Mulally will leave at the end of 2014 to take a job at Microsoft (Nasdaq: MSFT), while GM (NYSE: GM) has grabbed attention recently for its own CEO switch and the U.S. Treasury finally exiting its stake in the company.
Tesla shares are indicated higher Wednesday morning.
In this case, that axiom holds up well. Shares of Tesla have risen nearly 20 percent in December, following a 35 percent for the two-month period ending November 2013. During that period, Tesla was rattled with reports of fires in the company's flagship Model S automobile.
Following the fires, which occurred in October, the Nationals Highway Traffic Safety Administration opened a probe into the company. The event pressured Tesla shares for the better part of November.
Investors and analysts are now expecting a subdued impact from the move. Dougherty & Co.'s Andrea James recommends buying the stock now just on lower U.S. litigation prospects, but expectations of strong sales in China.
Barclays Brian Johnson agrees (he has a Hold rating on Tesla) and noted that Tesla's plan for a lower-cost vehicle to launch in 2016 is on track. Tesla will be holding a press event at the North American International Auto Show (NAIAS) in Detroit, Michigan, next month, and plans to debut its next-generation vehicle sometime in early 2015.
Two other automobile industry-related events shifting the limelight away from Tesla are the ongoing debate of whether or not Ford's (NYSE: F) Alan Mulally will leave at the end of 2014 to take a job at Microsoft (Nasdaq: MSFT), while GM (NYSE: GM) has grabbed attention recently for its own CEO switch and the U.S. Treasury finally exiting its stake in the company.
Tesla shares are indicated higher Wednesday morning.
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