NEW YORK (TheStreet) -- Tesla (TSLA) investors abruptly switched gears Tuesday. Shares of the luxury electric car manufacturer fell 1.5% by 2p.m. after roaring ahead for most of the morning on positive analyst comments and a British newspaper article.
$TSLA Feels like a big roll over here.? Chris (@GoldStan) May. 20 at 10:33 AM
Tesla's stock rallied following a bullish Morgan Stanley analyst note, published Monday and reported by Barron's Tuesday. In his note, Morgan Stanley analyst Adam Jonas reiterated his overweight rating and told longs not to worry about the bears' case for a Gigafactory failure. Tesla, Jonas said, has a history of proving naysayers wrong -- 25% gross margin case in point. Jonas argued that Panasonic wouldn't have signed on to the planned Gigafactory lithium battery facility if it didn't see potential in Elon Musk's strategy of housing battery-parts suppliers and manufacturers under the same roof.
British press added to the morning's bullish Tesla sentiment. The Telegraph reported that Tesla will launch a right-hand drive version of its Model S on June 7, helping to fuel demand in the UK. The paper suggested that the first British customer is a well-known Tesla fan. (Perhaps Richard Branson? According to Tesla's blog, the Virgin CEO couldn't get enough of the car a couple years ago).