Tesla Motors Inc (NASDAQ:TSLA) stock sank to $178 after the company reported its first quarter results on May 7. But shares have since gained more than 30% to $232 today. There were multiple catalysts that pushed the stock in the past few weeks. Tesla got a big boost earlier this month after the company signed a deal with New York that allowed it to keep selling its vehicles directly to consumers in the state. The company’s “open source movement” also provided an upside.
Is Tesla really the most important car company in the world?
On June 23, the stock ticked up 3.3% after Morgan Stanley analyst Adam Jonas said Tesla Motors Inc (NASDAQ:TSLA) is “arguably the world’s most important car company.” Component suppliers that once shunned Tesla now flock to the company. Success of its Model S sedan and its dominance in the electric car market have surprised even the established automakers. Jonas said its presence in the automobile industry has reinvigorated the spirit of innovation. Morgan Stanley has a $320 price target on Tesla.
Currently, five states including California, Nevada, Texas, New Mexico and Arizona are trying to woo the Elon Musk-led company for its Gigafactory. The giant battery factory would employ about 6,000 people. The cash-intensive automobile industry has seen few successful startups in the past few decades. But the San Francisco-based company continues to boost its sales. The company is now selling its car in Europe and China, besides North America. Earlier this month, Tesla Motors Inc (NASDAQ:TSLA) launched its first right-hand drive model in the UK. Shipments to Australia, Japan and Hong Kong are next.
Can Tesla deliver 3,000 vehicles in June?
However, Barclays analyst Brian A. Johnson said in a research note on June 23 that the company’s sales in the first two months of Q2 were not very impressive. He estimates that Tesla Motors Inc (NASDAQ:TSLA)’s sales have to rise dramatically in June to meet the company’s second quarter sales target of 7,500 units. Tesla has sold about 2,400 vehicles in North America and 1,100 units in Europe in the first two months of this quarter. Assuming China accounted for 1,000 deliveries in Q2, the company needs to sell about 3,000 vehicles in North America and Europe this month.
Tesla Motors Inc (NASDAQ:TSLA) shares were down 0.37% to $231.65 at 10:26 AM EDT on Wednesday