This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tesla Steps on Gas as Sales Surge (Update 1)

Tesla shares have soared this year, aided in part by a huge portion (46%) of the float being held short. Goldman Sachs analyst Patrick Archambault downgraded shares to "neutral," as the risk-reward situation gets smaller. "However, with the shares up 59% since its Mar 19 trough (vs. S&P 500 up 5.4%) we now see only 9% upside to our new 6-month $61 price target on yesterday's close, making risk/reward more evenly balanced," Archambault wrote in his report.


Tesla bears have been loud about the company and the industry's future, but CEO Elon Musk has been able to keep the positive momentum going for his electric car company. From announcements on services (allowing companies to use the Tesla Roadster and upgraded Model S vehicles while their car is being serviced), to financing, to auto-piloted cars in the future, Musk and Tesla have been able to prove the bears wrong.

Tesla is revolutionizing the electric car industry at breakneck speed, and is upping the ante, as customers have shown an affinity for its Model S. Musk has been able to quiet the bears, and show that there is a market for electric cars. That market is gradually growing, and the company is making all the right decisions to expand it.

Jefferies analyst Elain Kwei noted that Tesla has been hitting target after target, and the company is being validated in the marketplace. "At this early stage in the game, management is rightly focused on improving manufacturing efficiency and lowering costs with production of the Model S humming along at 400+ cars/week," Kwei wrote in her note. She believes that consumer awareness of the brand will continue to grow as sales and service networks become more established.

Tesla currently has 34 stores and 41 service locations, with plans to open 15 more stores, including some in Europe and Asia. She rates shares "buy" with a $70 price target, up from $68.

Tesla is firing on all cylinders, and stepping on the proverbial gas. The road has been paved with gold for Tesla, and shares are going from 0 to 60 faster than its own Model S. "The company raised FY2013 delivery guidance in a show of confidence," Kwei wrote. And things are just getting started."

--Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs