Tesla Traders Buy on Model X Hype
Tesla is experiencing a mid-week jolt thanks in part to Morgan Stanley analyst Adam Jonas, who said in a Wednesday note that the cool factor of company’s still-in-development Model X SUV gives it the potential to exceed the Model S in value and success.
The electric vehicle-maker’s stock was up more than 4 percent by midday with traders buying on the positive remarks and betting on the company’s long-term health.
Though the Model X isn’t scheduled to go into production until 2015, the company said it expects to have operational Alpha prototypes ready this week and Beta prototypes later in the year.
Traders’ enthusiasm for the new car adds to their appreciation of the company’s second-quarter results. Tesla reported Q2 earnings last week and beat consensus topline and bottomline estimates with adjusted earnings per share of 11 cents on $858 million in revenue. The stock popped on the report and is up around 9 percent over the past five trading days.
Tesla also announced Wednesday the appointment of Robyn Denholm, Executive Vice President and CFO at Juniper Networks, to its board of directors.
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