Tesla Stock Rises from the Ashes

By | October 17, 2013
Tesla Motors continues to draw the attention of the masses, with analysts claiming that the company's stock may very well see another 33 percent increase. Stocks took a dip earlier this month, thanks to a Model S that caught fire after it collided with an object in the road. The video of the vehicle went viral, further adding to the downturn of the company's stock. Elon Musk, Tesla Motors CEO, went on the record to calm down the hysteria. The vehicle hit a chunk of metal that fell from a semi-trailer, which punctured the battery pack's armor plate. The fire was contained to the battery, and only spread as firefighters punctured the battery pack. Musk defended the safety of the Model S by stating that the fire was contained thanks to the design and construction of the battery pack. Because of this episode, stocks dropped from $193, and by October 3, Tesla closed at $173.31 a share. Even with the drop, Craig Irwin of Wedbush Securities believes another increase is on the horizon for the electric automaker. "We see strong positives in Tesla's credible path to longer-term battery cost reduction and the Gen III vehicle target costs, and what we now believe will be a receptive buying public willing to purchase EVs while retaining reasonable expectations for these vehicles," said Irwin in his latest analyst upgrade. Shares have already started to increase, and as of October 15, shares were already up to $188.09. Currently, Tesla Motors stock is up 430 percent through October 14. Irwin has raised his initial 12-month price target from $180 to $240, and has also increased his 2017 sales estimates by 50 percent to 150,000 units. Source: Wall Street Journal
 
1 comments
Christopher Griffin
Christopher Griffin

I have found an error in this article. From what I have read in several other articles about the Wedbush Securities upgrade on TSLA stock, Irwin raised his 2017 sales estimate of cars built on Tesla's Gen III platform FROM 150,000 units, now UP to 300,000 - 500,000 units. This future Gen III platform will be slightly smaller than the current platform used to make the Model S sedan and Model X SUV/crossover. The Gen III will be about the size of a BMW 3-Series, and with today's current battery technology, it will have a range of around 200 miles (maybe more if battery technology advances between now and then). Tesla says that this smaller platform will also be offered in a sedan and SUV/crossover. The cost of this smaller sedan should start around $35,000.

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