Wednesday, October 30, 2013
Tesla Motors: Fluctuating Between Failure and Success
Tesla Motors’ (TSLA) shares took a hit last Wednesday following the release of a viral video on the internet in which a Tesla Model S caught fire after colliding with a metallic object. Tesla’s stock price fell around 6% to $181 that day, as analysts questioned the viability of the company’s battery technology and its future growth prospects. The stock fell a further 4% to $172 the following day on news that Robert Baird & Co., a financial services firm, had downgraded its target price for the stock citing execution risks.
However, the stock did make its way back up to $181 on Friday, following Tesla CEO Elon Musk’s statement that Tesla cars are in fact much safer to operate than conventional gasoline vehicles, and that the battery fire was an isolated incident caused by the rupture of one of the car’s battery cells.Read More: BMW, GM, TM, TSLA