Finally some good news for Tesla Motors Inc TSLA. Shares surged today after analysts issue positive reports and German regulators find no fault with the Model S after the recent fires.
Tesla Motors Inc (TSLA - Get Report) shares did an about-face today, surging as much as 13% after a mix of positive reports bringing upward momentum to the automaker’s stock. For one, German regulators decided after investigating that there are no defects in the Model S which contributed to the three recent fires in North America.
In addition, analysts from at least two firms have issued positive reports on Tesla this morning, adding fuel to the fire, so to speak.
Morgan Stanley calls Tesla’s plunge a buying opportunity
Analysts at Jefferies and Morgan Stanley weighed in on Tesla Motors Inc (TSLA - Get Report). Morgan Stanley analyst Adam Jonas listed Tesla as his top pick out of the 26 different companies his firm follows in the U.S. auto industry. Jonas said although the slide after the three Model S fires may have been justified, he expected shares to bounce back because the automaker’s long-term trajectory was still intact. He said the fires shouldn’t cause any “material damage” to Tesla’s business and that they would buy shares.The analyst has a $153 per share price target on Tesla Motors Inc (TSLA - Get Report). He said at the automaker’s highest point, it was “due for a big correction” because there was “little or no valuation support on near-term expectations.” Jonas reiterated his Overweight rating on the automaker.