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| Tesla Motors Inc - BidnessEtc |
Tesla motors Inc.
stock has been one of those stocks that recorded high gains in the current
year. Despite the controversies that they have been in, including the Ban on selling their cars through retail outlets, they were bought by investors
realizing the potential for growth the company has in the years to come. The
intrinsic value for the company being considered by value investors is
considerably high but it is trading at a much lower value. So realizing their
innovative and new cars, the investors are optimistic about the company and
expect it to grow organically.
Tesla motors Inc.
stock price has recorded a 52 week high of $265 with a low of $40.33. Tesla’s stock market cap is around $26
billion however the market cap of Toyota which is its competitor is around $170
billion. The share price of Tesla is more than double that of Toyota which
shows the optimism of investors.
Tesla Motors Inc.stock price today as of 10th April 2014, is trading at $216.93
up 0.68% from last night’s price of $215.46. Tesla stock Graph has been volatile lately because of the negative
news related to the Company. Another reason is the Earnings which have been
negative for the last five quarters. So they haven’t been able to return to
shareholders in the form of dividends. But why Tesla Motors stocks have witnessed record gains in their prices?
It’s mainly due to the growth prospects the company has. The investors are
confident about the company’s offerings that give them a competitive advantage
over other rivals like Toyota.
Tesla’s cars run on battery and due to this reason, the
mileage is quite impressive. Consumers looking for a stylish vehicle yet
reasonably priced and with excellent mileage are the main target market for
Tesla. Since last month, Tesla stock
chart has witnessed a downward trend of above 9%. In the short term
horizon, it will take time for the company to reflect their CAPEX in their
balance sheets. They have to work on cost cutting measures and efficiency so
that their Net income is positive and they start giving return to shareholders.
But investors looking for long term gains who are optimistic about the company rate
this stock as a buy.
Tesla Inc. news
came today when the luxury car maker unveiled its plans to start selling its
cars in China. China’s market has a huge potential that will give Tesla more
exposure in terms of Sales and Revenues. It is expected that the sales for the
Californian car maker in China will match the sales in US in the coming year. Reacting to the news Tesla motors share price rose 1% on intra trading day.
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