The shares of Tesla Motors Inc (NASDAQ:TSLA) continue to trade higher since the National Highway Traffic Safety Administration (NHTSA) reaffirmed the 5-star safety rating for its 2014 Model S vehicle and in all subcategories despite the fact that it is still investigating the fire incidents involving three of its electric cars.
Tesla Motors Inc (NASDAQ:TSLA) is trading around $155.56 per share, up by nearly 3% on Thursday around 12 noon in New York.
The electric car manufacturer maintained its position that the Model S vehicle is safer compared with vehicles powered by gasoline. Tesla Motors Inc (NASDAQ:TSLA) emphasized that its electric car is more than five times less likely to suffer a fire given the number of incidents occurring every year.
Deutsche Bank analyst Dan Galves expected that Tesla Motors Inc (NASDAQ:TSLA) will have a “series of positive catalysts over the next several months that could lead to renewed confidence” in the earnings trajectory of the company. According to him, some of the catalysts include a favorable conclusion of the investigation regarding the fire incidents involving the Model S vehicles, strong orders from China, and the acceleration of production.
Tesla managed to sell 20,000 vehicles this year
Separately, Dutch Mandel, associate publisher and editorial director of Autoweek told CNBC that Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) succeeded in bringing to the American consciousness that electric vehicles can exist. On the other hand, Michael Robinet, director of global vehicle production forecasts for IHS Automotive Consulting opined that Tesla is equivalent to a moon shot. According to him, Musk and his company are “pushing the paradigms of the industry” in terms developing and retailing the vehicle.
Tesla Motors Inc (NASDAQ:TSLA) managed to sell 20,000 vehicles this year. The company was able to prove that its critics are wrong as the company obtained profit by charging a premium, and it is building a recharging network across the country to allow its electric car owners to travel from coast to coast.
Meanwhile, the stock price of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) plummeted 5% to $7.34 per share on reports that its co-founder Mike Lazaridis reduced his stake in the company along with another co-founder. Lazaridis also abandoned its plan to take over the struggling Canadian smartphone manufacturer.
Lazaridid sold his shares in BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) when the stock surged 24% after the company announced its strategic partnership with Foxconn Technology Co., Ltd. (TPE:2354) to develop and manage the inventory for certain BlackBerry products. The partnership will initially focus on manufacturing smartphones for emerging markets.
Based on his regulatory filing Lazaridis sold 3,166,893 shares of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) at an average price of $7.55 per share. He also sold 333,107 shares at an average price of $7.63 per share. He still owns 26,267,887 shares or under 5% stake in the company.