Nasdaq TSLA Tesla
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Tesla Shares Up 7% on Wednesday
Shares of the largest electric car maker Tesla, Inc. (TSLA) gained 7.5% on Wednesday, after its CEO Elon Musk said he has sold “enough stock” to reach his 10% sale of Tesla's stake. The company regained its $1 trillion market cap status, with shares closing at $1,008.87 on December 22.
The upswing in Tesla stock and a few of the big tech stocks also pushed the S&P 500 (SPX) up 1% on Wednesday.
Musk Says He Sold Enough StockSince Musk’s infamous Twitter, Inc. (TWTR) poll on November 6, Tesla stock has lost around 17% of its value. With Musk selling his proposed 10% stake in the company in a phased manner, investors have joined the bandwagon and gone on a selling spree.
However, investors found relief in Musk’s recent interview, where he said, “I sold enough stock to get to around 10% plus the option exercise stuff, and I tried to be extremely literal here.”
The words echoed that the CEO will be halting his stock sale, although he hasn’t yet reached the full 10% stake. The day after the interview, Musk sold another 340,564 shares for $333.6 million, as disclosed in a Form 4 filing with the SEC.
Apart from the comments on the share sale, Musk also shed some light on his decision to move out of California. The CEO said, “California used to be the land of opportunity, and now it is… becoming more so the land of sort of overregulation, overlitigation, over taxation.”
Wall Street ViewYesterday, RBC Capital analyst Joseph Spak reiterated a Hold rating on the stock with a price target of $950, implying 5.8% downside potential to current levels. Spak estimates Tesla will deliver 285,000 vehicles in its upcoming earnings for the fourth quarter.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 13 Buys, 8 Holds, and 5 Sells. The average Tesla price target of $1,004.33 implies that shares are almost fully valued at current levels. Shares have gained 56.2% over the past year.
Insider Trading ActivityTipRanks’ Insider Trading Activity shows that Insider Signal is currently Negative on Tesla, with corporate insiders selling Tesla shares worth $5.9 billion in the last quarter.
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Tesla Submits Documentation for German Factory – Report
Tesla (TSLA) has submitted all the necessary documentation needed for the approval of its proposed electric vehicle (EV) factory in Berlin, Germany, according to Reuters. TSLA shares jumped 7.49% to close at $1,008.87 on December 22.
Tesla is a U.S. company that designs, manufactures, and sells EV cars, solar energy generation systems, and energy storage products. It also operates a network of superchargers.
Tesla's German PushDue to environmental resistance and red tape, the approval process has taken quite some time. It is still unclear whether Tesla will secure approval and when it is likely to roll out its first electric vehicle from the country. A decision on the approval process might come as early as next year.
In the recent past, the electric vehicle giant has had to push back the expected opening of the factory. Chief Executive Officer Elon Musk has also had to travel to Germany numerous times to check up on the regulatory process, which he has criticized for being slow.
The delay in the approval process came on Tesla expanding its original plan to include a battery factory. Consequently, the regulatory process had to undergo a renewed process involving public participation. All the feedback raised from the consultation will be considered when coming to the final decision.
Stock RatingLast week, Daiwa Securities analyst Jairam Nathan reiterated a Hold rating on Tesla stock and raised the price target to $1,050 from $850, implying 4.08% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 13 Buys, 8 Holds, and 6 Sells. The average Tesla stock price target of $1,004.33 implies that shares are fully-valued at current levels.
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