Tesla in favor of Wall Street? Blink your eyes and you may miss it.



[ad_1]

If you are an investor owning Tesla shares, do not blink. Because depending on the day of the week, or even the time of day, the feeling of Wall Street with regard to the company is likely to change.

The latest example is Tuesday: Tesla shares climbed 5% to nearly $ 263 after Macquarie analyst Maynard Um began hedging the company with a rating of outperformance (the equivalent of the purchase) and a price target of $ 430 per share.

If that number stands out, well, he should. Because Tesla's vision of Um is pricing the company's shares at a price above the $ 420 per share price suggested by Tesla CEO Elon Musk in August, he wanted Tesla to remain private. This is also the amount that Musk mentioned in his now famous "Secure Financing" tweet, which eventually led him to agree to resign as Tesla's chairman of the board as part of an agreement to settle fraud charges with the Securities and Exchange Commission.

For a company that saw its market value fall by $ 10 billion in a week, Tesla has become a test for the nerves of its investors. On Monday, Tesla shares fell 4.3% after reputed investor David Einhorn compared Tesla to Lehman Brothers, the investment bank that collapsed during the financial crisis of 2008. Last Friday, after Musk tweeted, the SEC should be called the Tesla stock price fell 7% at the close of markets.

But things changed in favor of Tesla on Tuesday, as Um said the differentiation of its products made it a "disruptive technology company" in storage and power generation, in addition to its branded electric car, such as the model 3 sedan. Um said that one of the benefits of Tesla is to control the software that makes up the brains of its vehicles, giving it a head start on other companies working on cars electric and possibly autonomous.

"(Tesla) is unique in that the company believes that existing equipment is all that is needed to enable autonomous driving technology," said Um in a research note in which he initiated his coverage from Tesla. "We do not see hardware as the biggest challenge, but rather software and data. We believe Tesla's real-world data collection is essential to enable self-sufficiency. "

[ad_2]
Source link