Tesla Hints At Working With Toyota
By Carly Forster
Tesla Motors, Inc. (NASDAQ: TSLA) is an American automobile company that designs, manufactures, and sells electric powered cars. Last week, Chief Executive Elon Musk warned short-term investors that Tesla stock is currently “kinda high,” inadvertently increasing shares up 1.4%.
This week, Tesla hinted that it may team up with Toyota for a second time, even after the companies’ completed the jointly developed RAV4 EV only delivered 2,000 units since coming on the market two years ago. While the companies have no definitive plans as of yet, Musk stated, “If you look out maybe two or three years from now, I would not be surprised if there was a significant deal with Toyota and Tesla.” This follows the news that Tesla has chosen the state of Nevada to build its $5 billion gigafactory and that the company is expanding into China.
Shares of Tesla opened at $277.62 on Monday, September 8th. The car company has a 1-year high of $291.42 and a 1-year low of $116.10. The stock’s daily moving average is $281.20 and has a 50-day moving average of $249.30. The market cap for Tesla is $35.16 billion and its P/E ratio is not applicable.
On September 8th, FBN Securities analyst Shelby Seyrafi initiated an Outperform rating for Tesla with a $325 price target. He noted, “The Company is gaining share and currently has minimal penetration… This implies only 2.2% penetration in 2014, so there is ample room for TSLA to grow well for many years to come. TSLA has a strong product roadmap ahead, with its Model X (also second-generation) crossover shipping in FH2 2015 and with its Model 3 (third generation) sedan shipping in 2017. The Model 3 will be a significant catalyst for the company as it will have much lower price points (~$35-40K) than the current $70-80K price points of the Model S and will therefore appeal much better to the mass market.” Seyrafi currently has a +5.7% average return on all stocks he has rated and a 65% success rate in recommending stocks.
On the other hand, on September 5th Seeking Alpha blogger, Weighing Machine, said that Tesla is “massively overvalued.” He even went so far as to say “While Tesla seems to be a great company, at nearly 100x 2015 earnings, I think it is likely to be a terrible stock.” The blogger has a +6.4% average return on all stocks he has rated and a 58% success rate recommending stocks.
On average, the current top analyst consensus for TSLA is Moderate Buy.