Tesla Motors Inc (NASDAQ:TSLA) can’t stay out of the news for good and for bad.
In the News
Tesla Motors Inc (NASDAQ:TSLA), designs, manufactures, and sells electric cars. They also produce electric powertrain components, which they sell to other automakers, such as Daimler AG (OTCMKTS:DDAIF) (ETR:DAI) and Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203).
ValueWalk's Raul Panganiban interviews William Burckart, The Investment Integration Project’s President and COO, and discuss his recent book that he co-authored, “21st Century Investing: Redirecting Financial Strategies to Drive System Change”. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors.
The good: Cars.com just announced that the Model S is the second most American made thanks in part to the construction of their new Gigafactory. This new factory will produce approximately 500,000 vehicles a year. In addition, these new Tesla vehicles will consist of 90 percent Made in America material, thus having more American parts than any other vehicle in the United States.
The bad: News is circulating about a Tesla Model S splitting in half following a car crash. In the video, the Model S, which was going at a speed of 100 mph, crashed into several cars before hitting a pole in West Hollywood, California. A similar accident occurred in Mexico earlier this year.
What impact will these two events have on Tesla stock? Top experts weigh in.
On July 8th, Seeking Alpha blogger Green Energy Addict believed that the negative stock price reaction for Tesla Motors Inc (NASDAQ:TSLA) following the crash in West Hollywood isn’t justified, stressing that Tesla vehicles are still the safest on the road today. In addition, Green Energy Addict believes that orders for Tesla vehicles should rise, rather than decline.
Green Energy Addict has an overall success rate of 90%, earning an average return of +122.8%.
On the other hand, on July 7th, Barclay analyst Brian Johnson maintained an equal weight rating on Tesla Motors Inc (NASDAQ:TSLA) with a price target of $220, explaining that Tesla “should report second-quarter sales of its Model S that show China compensating for softer European demand for the sedan.” In addition, he believes that “the company will probably meet its forecast of delivering 7,500 of the cars during the quarter…[and] Achieving that goal will be the result of China-bound shipments.”
Johnson has an overall success rate of 73%, earning a +9.6% average return.
Concerning Tesla, he has a 100% success rate, with an average return of +66.3%.
Robert W. Baird & Co. analyst Ben Kallo gave Tesla Motors Inc (NASDAQ:TSLA) an Outperform rating on July 3rd due to the believe that state legislatures are feeling pressurize to change state laws in order to allow Tesla to sell directly to consumers. Kallo expects that this pressure will be exerted by “constituents of all political parties” rather than special interest groups.
Kallo has an overall success rate of 63%, earning an average return on +29.4%.
He has a 82% success rate recommendation Tesla stock, with an average return of +78.8%.
Whether you believe that now is the time to buy or hold Tesla Motors Inc (NASDAQ:TSLA) stock, one thing is certain, these analysts agree that Tesla is up for one heck of a ride!