As per Andrew Fung of CLSA, Tesla Motors Inc (NASDAQ:TSLA) is indeed headed for the $300 mark owing to a number of reasons. On being questioned on his projection, the financial whiz who works for this renowned Asia-focused brokerage house enumerated the possible factors that could propel this automotive company to higher levels.
Just a week back, on August 15th, 2014, Tesla Motors Inc (NASDAQ:TSLA)’s momentum had come under the scanner and questions had been raised as to whether it was an indication of a downside to come. For a company to maintain a momentum for long in spite of negative consumer reports is suspicious but for this entity it was explained as being the result of Elon Musk’s leadership. It had also been recommended not to sell the stock at the present high levels since not only was the momentum expected to continue but it was also touted as breaking into higher grounds.
Today’s news pertaining to the stock moving towards 300-levels is just a validation of its precursor and CLSA representative Andrew Fung substantiates his comments by pointing out that the company is moving in a direction that would trigger volume growth. Recently, Tesla Motors Inc (NASDAQ:TSLA) has revealed its project of building $5billion Gigafactory to facilitate production of lithium-ion batteries meant for its electric cars. This in itself has caused enough excitement, as is evident from what Jeff Chamberlain of Argonne National Laboratory had to say –
“The advent of lithium ion has truly enabled transportation uses. Because if you remember your freshman chemistry, you think of the periodic table — lithium is in the upper left-hand corner of the periodic table. Only hydrogen and helium are lighter on an atomic basis.”
Another feather in Tesla Motors Inc (NASDAQ:TSLA)’s hat is its inauguration of first dealership in Quebec, Canada, for selling electric cars. Seen as a follow-up of the company’s first super-charger station at Squamish in British Columbia, this presence is likely to augur higher earnings for the company.
This article has been written by Vinita Basu.