Tesla Motors Inc Stock Hits Highs Over Supercharger Report

Tesla Motors Inc Stock Hits Highs Over Supercharger Report
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Tesla Motors Inc (NASDAQ:TSLA) shares have moved up over the last few months following reports about a possible discussion with rivals Nissan Motor Co. Ltd. and BMW AG over collaboration on charging stations for electric cars. The news that the delivery of its Model X utility vehicles would start next year also pushed the shares up.

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Analysts believe that “range anxiety” has been limiting the popularity of electric vehicles as there are relatively fewer charging stations available.

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Tesla up again

On Monday, Tesla Motors Inc (NASDAQ:TSLA) shares closed up 8.8% at $224.61, which is the best performance since April 3. In terms of dollar and percentage gain, the performance is the best since late February. According to FactSet, stock’s intraday high of $225.49 is the highest since April 4.

The impressive run was able to somewhat compensate for last week’s losses, when the company announced opening up of patents to advance electric-car technology. Yesterdays gain has also put stock in the black for the month of June.

Over the weekend, a report from the Financial Times, citing unnamed sources from the three companies, revealed that Nissan and BMW “are keen on talks” with Tesla to develop a supercharger network along with establishing car-charging standards.

Nissan is the biggest electric car maker, and its Leaf brand is quite popular among users. BMW recently developed a line of luxury electric and hybrid cars, which could give Tesla Motors Inc (NASDAQ:TSLA) a tough fight, according to analysts.

Mixed reactions from analysts

Last Thursday, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk announced opening up of the campany’s patent portfolio, following which shares were down and ended the week down 0.8%. Over the past three months, shares have lost 2.6%, but over the last 12 months, they are up 124%.

According to the the CEO, the move is “in the spirit of the open source movement, for the advancement of electric vehicle technology.”

A report from Morgan Stanley, dated June 13, 2014, argues that apart from enhancing the EV adoption, the latest move is a part of the company’s marketing and PR strategy. Tesla Motors Inc (NASDAQ:TSLA) will significantly benefit if the auto industry follows its battery format and EV charging infrastructure.

In a separate report dated June 13, 2014, Baird analysts argue the opening up of patents will have a minimal impact on Tesla Motors Inc (NASDAQ:TSLA) in the near term.

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