After having been on the receiving end for the last three trading sessions, shares of Tesla Motors Inc (NASDAQ:TSLA) surged on Wednesday and are expected to continue upward if analysts’ predictions are anything to go by.
Downtrend in the company’s performance was attributed to plummeting oil prices and the logic was that since people could afford to buy gas at present, no-one would be really interested in an electric car. However, Wall Street thinks otherwise and, in its latest update, has projected Tesla Motors Inc (NASDAQ:TSLA) as a front-runner in the coming year, 2015. CNBC covered this angle and its analyst, John Maloney had the following observation to make –
“Analysts like Tesla Motors Inc. (NASDAQ:TSLA) again after 20% drop this month; it turns out they don’t just like it; they love it. They predict it is going to be the best performer of 2015 beating out Apple, Priceline. Any tech stock you name Tesla Motors Inc. (NASDAQ:TSLA) is going to beat it.”
John Maloney went on to point out that this optimistic forecast was based on the prediction that oil prices would stabilize in 2015 and this in itself would provide the company with the momentum required to outperform every other stock in the market.
On its part, Tesla Motors Inc (NASDAQ:TSLA) has met its annual objective of global expansion that it had slated for 2014 by selling vehicles in Australia. December, 2014, was witness to nine vehicles having been delivered Down-Under and accompanying this introduction is the Supercharger network which as per the press release issued by the company –
“Next year, the Tesla Supercharger network will connect Canberra, Melbourne and Sydney, and by 2016 the network will connect all major cities along the east coast of Australia.”
There is only one factor that could probably spoil the party and it pertains to rising competition in the electric car segment. But Tesla Motors Inc (NASDAQ:TSLA) being one of the oldest players in the segment definitely stands a better chance soaring than any other brand.
This article has been written by Vinita Basu.