Tesla poised to shrug off tweet chaos
new york — The tide might finally be turning for Tesla investors, who have been on a choppy ride this year.
Shares of the electric vehicle maker were poised to wipe out the steep losses since early August, post touching a high of $387.46. The stock was up 3 per cent at 10.24am in New York, after jumping as much as 4.5 per cent to touch a high of $379.49.
The latest vote of confidence came from Jefferies analyst Philippe Houchois, who upgraded his rating on Tesla to buy from hold, saying the company looks positioned to outperform electricvehicle peers in the coming year.
Broader price points, battery improvements and a strong brand will help Tesla grow earnings in 2019-2020, Houchois wrote in a note to clients. Tesla is also shoring up its balance sheet even though governance issues remain a concern for many investors after founder Elon Musk’s botched plan to take the company private.
“We think it is fair to ask whether Musk intends to remain as CEO,” Houchois wrote. “In a downside scenario, we think potential M&A provides a floor to valuation.”
Jefferies raised its price target on Tesla shares to $450 from $360, among the highest of analysts surveyed by Bloomberg.
GM plants
Musk told CBS’s “60 Minutes” that he may be willing to buy some of the five factories General Motors will idle next year, making him the second rival in two days to step up with possible job-creating moves as GM takes political heat for cutting workers.
Musk made the statements in an interview with Leslie Stahl that will air Sunday. CBS released excerpts on Friday.