Tesla surges after bullish analysts say 'buy even with drama'

Tesla stocks tumbled this week after CEO Elon Musk appeared to smoke pot in a podcast. In addition two top executives said Friday they were leaving the company

Shares of the company, which closed up 8.5 per cent at $285.50 on Monday after two brokerages said it could meet its production targets for the second half of the year, fell almost 2 per cent before the bell on Tuesday. The electric auto manufacturer has warned customers that they have a small window of opportunity to order the colors before its too late.

It takes more than a toke on a joint by a CEO to bring down a company these days - and Tesla is no different.

"Tesla is in a cash pinch", Cowen & Co. analyst Jeffrey Osborne said in an interview. It's hard to sell electric cars. In other words, Musk was aiming for the company to ramp up its production rate by 20 times in five years.

According to some tech industry analysts, Tesla's move to ditch paint options will just be the first of the many measures that the company is willing to implement in order for it to achieve a more simplified production process.

Baird analyst Ben Kallo confirmed his buy rating on Tesla, saying that the stock is still worth a buy "even with drama".

CEO of Tesla has previously noted how the paint shop at the Fremont factory has become a bottleneck for their ambitions production plans.

It's no secret that high-tech automaker Tesla has faced all sorts of challenges lately.

One day after Tesla CEO and board member, Elon Musk, spoke about digging tunnels under LA and human threatening AI while taking a hit of Marijuana and drinking whiskey during a live interview, the company fell into seemingly deeper turmoil. The fiasco reportedly sparked an SEC investigation into the accuracy of Musk's "funding secured" tweet. Tesla shares have also been hit by a round of short selling, sparking more angry tweets, and have dipped accordingly.

The behaviour is likely to have contributed to recent executive departures including Chief Accounting Officer David Morton, who left last week after only one month on the job, Shah wrote.

When the Model 3 was originally introduced to the public in 2016, Musk announced that Tesla would produce 100,000 to 200,000 of the cars in 2017. They have fallen 29 percent from their August 7 intraday high of US$387.46 when Musk tweeted about taking the company private.

"We could raise money, but I think we don't need to, and I think it's better to just not", Musk said.



Latest news

State of the Union 2018: The Hour of European Sovereignty
The number of legal obligations that promote transparency will increase trust among European citizens, particularly internet users.

Eyewall of Florence slams Carolinas as Cat-1 hurricane
Wind and the tidal surge will be the biggest issues for airports in the coastal Carolinas, FlightAware's Orsi said. Unsure of what they might find when they return home, the couple went shopping for a recreational vehicle.

Hurricane Florence Storm Surge Floods North Carolina, Knocks Out Power
Farther up the coast, in New Bern , about 150 people waited to be rescued from floods on the Neuse River, WXII-TV reported . The Army Corps of Engineers were preparing to start work restoring power, installing temporary roofing and removing debris.

Putin on Novichok Suspects: 'We Have Found Them'
He added that the two men were civilians, according the state-run Ria Novosti news agency and Russian Embassy in London . The attack left the Skripals hospitalized for weeks, and two other area residents became seriously ill months later.

Trump declares administration ‘completely ready’ for Hurricane Florence
Its unclear exactly how many people fled, but more than 1.7 million people in the Carolinas and Virginia were warned to clear out. Boarding up his home in Myrtle Beach, South Carolina, Chris Pennington watched the forecasts and tried to decide when to leave.

Other news