Tesla Motors continues to draw the attention of the masses, with analysts claiming that the company’s stock may very well see another 33 percent increase. Stocks took a dip earlier this month, thanks to a Model S that caught fire after it collided with an object in the road. The video of the vehicle went viral, further adding to the downturn of the company’s stock.
Elon Musk, Tesla Motors CEO, went on the record to calm down the hysteria. The vehicle hit a chunk of metal that fell from a semi-trailer, which punctured the battery pack’s armor plate. The fire was contained to the battery, and only spread as firefighters punctured the battery pack. Musk defended the safety of the Model S by stating that the fire was contained thanks to the design and construction of the battery pack.
Because of this episode, stocks dropped from $193, and by October 3, Tesla closed at $173.31 a share. Even with the drop, Craig Irwin of Wedbush Securities believes another increase is on the horizon for the electric automaker. “We see strong positives in Tesla’s credible path to longer-term battery cost reduction and the Gen III vehicle target costs, and what we now believe will be a receptive buying public willing to purchase EVs while retaining reasonable expectations for these vehicles,” said Irwin in his latest analyst upgrade.
Shares have already started to increase, and as of October 15, shares were already up to $188.09. Currently, Tesla Motors stock is up 430 percent through October 14. Irwin has raised his initial 12-month price target from $180 to $240, and has also increased his 2017 sales estimates by 50 percent to 150,000 units.
Source: Wall Street Journal