Tesla Motors Inc Stock Hits Highs Over Supercharger Report

Tesla stockBlomst / Pixabay

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.

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

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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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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