Tesla Motors Shares Roared Back: What You Need to Know
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What: Following Tesla Motors' (NAS: TSLA) late-afternoon high-speed crash on Friday, shares are roaring back with a vengeance today, with gains upward of 20%, as fears over some executive departures now appear overblown.
So what: Shares had cratered on news that two high-level executives had departed, stoking fears concerning the Model S development. In a conference call this morning, CEO Elon Musk addressed analyst questions, elaborated on conditions surrounding the departures, and reaffirmed the company's projections. Musk said the departures will have no operational impact on the Model S's timeline, and while one exec left for personal reasons, the other was no longer a good fit for Tesla.
Now what: Musk projects 20,000 unit sales next year for the Model S, with at least a 25% gross margin. A number of analysts have followed up with bullish sentiments, further framing Friday's sell-off as a major overreaction. Dougherty & Co. has reiterated its buy rating and $40 price target, saying the long-term growth story remains intact. Wunderlich Securities and Goldman Sachs have both upgraded Tesla from hold to buy, with $30 and $35 respective price targets.
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At the time this article was published Fool contributorEvan Niuowns shares of Tesla Motors, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Tesla Motors. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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