Apple Inc. (NASDAQ:AAPL) and Tesla Motors Inc. (NASDAQ:TSLA) were both up in pre-market trading for different reasons: while Tesla was cleared in a fire investigation by German officials, Apple Inc. (NASDAQ:AAPL) received an upgrade from UBS analysts.
Tesla regains some of its lost ground
Tesla Motors Inc (NASDAQ:TSLA) stock regained some its lost value after the electronic vehicle maker was cleared in a fire investigation by German officials.
Since the three fire incidents, several concerns have been raised by experts and analysts over the safety of the Model S electric sports sedans, which resulted in investors losing confidence in the stock. However, the company, managed by CEO Elon Musk, completely denies any fault on its part. However, a U.S. probe in the incident is underway.
On Tuesday, in pre-market trading, Tesla Motors Inc (NASDAQ:TSLA) was up 3.9%. According to data from FactSet, the shares of the company, after having a dream run throughout the year, lost 17.3% in October and 20.4% in November.
Morgan Stanley analyst, Adam Jonas said in a note today that though the news of the fire incident were “clearly disruptive” for the stock, the incidents would not have any “material damage” on the business.
“Tesla shares have moved from 20 percent overvalued to nearly 20 percent undervalued in just 2 months,” wrote Jonas. According to the analyst, shares of the company are now among the top pick on Morgan Stanley’s U.S. auto coverage of 26 names, and present a good buying opportunity.
Apple up after an upgrade from UBS
Apple Inc. (NASDAQ:AAPL) shares were up 0.8% pre-market at $555.76 owing to an upgrade in rating from Neutral to Buy by UBS analysts. The analysts have also raised the price target to $650 from $540 owing to the expectations that big buyers will favor the stock next year helping the stock to outpace rivals like Microsoft Corporation (NASDAQ:MSFT).
According to analyst Steven Milunovich, the long-term outlook of the stock will be based on whether or not Apple could provide “sufficient differentiation to justify its premium pricing and margins.” The analyst further says, “History indicates this is very difficult though the Mac arguably is an exception. Apple is the poster company for the ‘better before cheaper’ approach that seems to define successful companies.”
After the end of the trading session on Monday, Apple Inc. (NASDAQ:AAPL) confirmed the acquisition of San Francisco’s Topsy Labs, which analyzes data from Twitter. The amount paid by the iPhone maker has not been confirmed yet, but the price is expected to be lower than the $350-$360 million paid for the purchase of PrimeSense, which was acquired by Apple last week.
