NEW YORK (TheStreet) --Shares of Tesla Motors Inc. (TSLA) are higher by 3.19% to $213 on Monday as the market continues to react positively to Thursday's announcement the company will share its technology patents.
Tesla acquired patents to protect itself from larger automotive manufactures but decided to share its technology in the hopes it will increase the development of electric cars, Zacks Equity Research reports.
The company believes it will see a gain off its decision to share its patents as the move could cause a charging infrastructure resulting in a boost in sales, Zacks said.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."