Insight Trading Reports Tesla’s Market Cap Exceeds Billion
Insight Trading: Electric car maker, Tesla has seen its market capitalization surge beyond the $ 30 billion mark following a Morgan Stanley analyst call which more than doubled its projected price target for the company’s stock over the next 12 months.
The call tips Tesla’s stock to reach $ 320 a share compared with an earlier estimate of $ 153. The stock promptly surged by as much as 14% to $ 248 in brisk trade in response to the upgrade.
“There’s a lot of positive news floating around Tesla right now,” said an Insight Trading researcher. “The company’s announced that it’s to partner with Panasonic to build a so-called “gigafacotry” which will mass-produce lithium-ion batteries to make more affordable cars and, furthermore, its Model S sedan has recently become the first US car to be dubbed Consumer Reports’ “best overall pick” in the magazine’s yearly contest,” he added.
Panasonic is a Tesla investor and currently produces batteries for the Model S and other electric vehicles. Analysts at Insight Trading believe that the joint venture between the two companies could potentially help significantly reduce the cost of producing lithium-ion batteries which can then be supplied to other manufacturers.
“The new valuation thrusts Tesla into exalted company,” said the Insight Trading researcher. “As it stands now, the company is worth half of two of America’s biggest automakers; namely General Motors at $ 57.4bn and Ford at $ 59.8bn and with the potential of this joint venture, it could become a major force to be reckoned with in terms of energy storage too,” he concluded.
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