The auto making giant is currently trading upwards following
the upgrade the firm has received from Morgan Stanley.
Tesla Motors has recently experienced a massive rise in the stock
market, following an upgrade that was carried out by the analysts at Morgan
Stanley who have changed the ratings on the auto making giant. This change in
the ratings given by the renowned equity firm has resulted in the share price
of the electric car makers go up by a huge 4.87% which has stirred the
automotive industry by a huge difference.
The share price that the smart car makers are currently enjoying is now
at $254.99, which records a huge increase from the previous lows that the
shares had been trading on, according to latest Tesla stock news.
Elon Musk’s company experienced a blow in the share value when analysts
at USB stated
that the hybrid car makers could be facing a shaky future since there are other
strong competitors in the market who still seem to be selling traditionally
driven cars without any problems and that too in a huge number. On July 20, the
firm went right up on the stock index and managed to maintain its second
highest position for the share price so far recorded. However, since then the
dip has been quiet evident. The firm also ended up reporting a disappointing
earnings report which made the investors retreat and the analysts quite
surprised.
This upgrade of share price has helped Tesla get back in its lost
position in the market which is something the Electric vehicle makers desperately needed. Last
Thursday, the smart car makers were also seen to announce that they will now be
selling around 2.1 million shares of the firm which will be worth $566.6
million in total. This news has also worked as another factor to help boost the
share price of the auto giant. On the other hand, analysts are of the opinion
that investors in the company will be encouraged to buy the shares of the auto
makers this way and this will remove all kinds of doubts they have on the firm.
According to news, it has also emerged that the electric
car making
company’s CEO, Elon Musk,
will also be using this opportunity to increase his stake in the firm by buying
a massive number of shares, which will be worth $20 million.
Analysts of Morgan Stanley believe that in the coming months,
Tesla has the potential to start its own mobility business without any other firm’s help.
They also believe that the firm could be doing a lot more in the coming months
than just manufacturing and selling cars which could be something that the
other auto giants can learn from.
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