|Day's range||486.00 - 486.00|
In the latest trading session, Tesla (TSLA) closed at $1,389.86, marking a +1.33% move from the previous day.
Tuesday brought an intraday reversal to the stock market. The Nasdaq Composite (NASDAQINDEX: ^IXIC) jumped out to a solid gain by the middle of the day, but by the end of the session, the index was down almost 1%. The Nasdaq 100 saw similar declines, motivated in large part by calls from major players on Wall Street that the stock market's huge rebound from the March lows might have gotten ahead of itself.
(Bloomberg) -- The remarkable rally in Tesla Inc. shares has put Wall Street in a bind. Their price targets are becoming obsolete almost as fast as they are changed, triggering a surge of revisions, yet an overwhelming majority of analysts still recommend selling the stock.The latest example of this seemingly contradictory stance came from Morgan Stanley on Tuesday, when analyst Adam Jonas lifted the best-case price target for the electric-vehicle maker to $2,070, after the stock’s “extraordinary” run overshot a previous bull-case estimate of $1,200, which was just set less than five months ago.But the analyst maintained a sell-equivalent rating on the stock. While the market has done “more than a good enough job” of discounting the investment opportunity in the company, Jonas said it has not sufficiently accounted for risks such as Tesla’s ability to maintain current profit levels in China and “inevitable” competition from technology firms like Amazon.com Inc. and Alphabet Inc. Jonas also lifted his regular price target to $740 from $650, suggesting a potential risk that the stock would fall 46% from Monday’s close.The average analyst price target on Tesla now stands at $733, which has risen sharply in the past few months as analysts scrambled to keep pace with the skyrocketing shares. At the same time, the split between bullish and bearish analysts has largely stayed the same.According to Bloomberg data, 16 analysts currently recommend selling Tesla, while 11 advise holding, and nine say buy. A more striking picture emerges from the range of price targets that these analysts offer. The highest is $1,500, suggesting a 9% premium to the last close, while the lowest is $87, representing a 94% decline.Disagreements notwithstanding, the general expectation is that Tesla shares will keep climbing in the short term, before eventually succumbing to gravity.“While we still believe Tesla is fundamentally overvalued, we see nothing to prevent the shares moving higher in the coming weeks and urge our bearish friends to remain in the shelter of their caves,” Barclays analyst Brian Johnson, who carries a sell-equivalent rating and a price target of $300, wrote to clients on Monday.That may prove good advice, since the stream of bullish news may continue to flow for a while.The better-than-expected delivery numbers in an “extremely difficult” second quarter for the auto sector makes Tesla appear less risky than other carmakers, Morgan Stanley’s Jonas said.“Tesla has demonstrated one very powerful differentiating quality versus many of its auto peers: demand is holding up better,” Jonas wrote, noting that quarterly volume fell only 5% versus a year ago. By comparison, General Motors Co., Fiat Chrysler Automobiles NV, Toyota Motor Corp. and Nissan Motor Co. saw U.S. sales decline 34% or more in the quarter.Those strong deliveries also mean Tesla might report a profit for the quarter, a milestone that can qualify its stock for inclusion in the S&P 500 Index, Barclays analyst Johnson said.Tesla shares jumped as much as 4.2% to $1,429.50 on Tuesday, extending the year-to-date advance to 234%.(Rewrites throughout, adds Barclays comments, updates shares)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Sunrun Inc., America’s biggest rooftop-solar company, is set to become a behemoth through a $1.46 billion takeover of its rival Vivint Solar Inc. Shares of both companies surged.The agreement announced late Monday is one of the industry’s biggest. It comes after Tesla Inc.’s 2016 purchase of debt-plagued SolarCity Corp. and the failed 2015 acquisition of Vivint by SunEdison Inc., the clean-energy giant that went bankrupt soon after.The second major U.S. energy deal in as many days -- following Berkshire Hathaway Inc.’s $4 billion purchase of Dominion Energy Inc. assets -- also threatens to further weaken Tesla’s grip on the rooftop-solar market and could inspire more sector consolidation. Sunrun and Vivint combined provide about 75% of new residential solar leases each quarter, according to BloombergNEF.“Sunrun will be freaking big,” Joe Osha, an analyst at JMP Securities, said in an interview. “They are clearly looking for ways to get scale and efficiency.”Sunrun shares rose 25% at 12:07 p.m. in New York. Vivint climbed 37%.The deal, subject to approvals, values Blackstone Group Inc.-backed Vivint at $3.2 billion including debt. It comes as America’s rooftop-solar industry works its way back from the worst of the coronavirus pandemic. Door-to-door sales -- a key marketing strategy for installers -- practically ceased as states imposed lockdowns, while installations were slowed or canceled.“Now was a perfect time because we have been through the Covid test,” Sunrun Chief Executive Officer Lynn Jurich said on a conference call Tuesday.When asked if the company had concern that regulators could raise antitrust issues related to the deal, Sunrun Executive Chairman Ed Fenster said on the call that he’s confident it’s going to be viewed as “positive for consumers.” He added that there are more than 10,000 solar companies in the U.S., and that the residential-solar industry represents about 2% of electricity generation.Sunrun has been America’s largest rooftop-solar company for more than two years, edging aside Tesla, which had inherited the throne from longtime king SolarCity. Tesla’s market share has shrunk since the acquisition amid strategic shifts and competition from rooftop rivals including Sunnova Energy International Inc. and SunPower Corp.Like most rooftop solar companies, Sunrun relies on project finance to help fuel growth, and Fenster said the deal will help the company raise capital more efficiently. Sunrun also said the merger would enable it to consolidate field-operation locations between the companies to save on rent and overhead expenses.Rebound on HorizonAfter taking a hit during the pandemic, there’s evidence rooftop solar may be rebounding. Investor enthusiasm for the sector has surged after March lows, companies have lined up financings in recent weeks, and there have been efforts to ramp up the digitization of operations.Amid the pandemic, rooftop solar “could be an industry that picks up faster than others,” Hugh Bromley, an analyst at BNEF, said in an interview. “People are staying home thinking about renovations and they’re seeing their power bills increase while they’re running the air conditioner around the clock.”New leases and power-purchase agreements represented about 27% of American residential-solar systems prior to the pandemic. Marketing is usually the biggest expense for American installers, and the companies said in a statement Monday that the deal will create $90 million in annual “cost synergies.”The acquisition, which is expected to close in the fourth quarter, is an all-stock transaction, under which each share of Vivint will be exchanged for 0.55 shares of Sunrun. The combined company would have an enterprise value of $9.2 billion, they said Monday.(Adds chairman quote in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla's Chief Executive Officer Elon Musk is "a genius who defies common sense and can be overly optimistic," Panasonic's <6752.T> CEO said on Tuesday, as the Japanese firm cautiously moves to expand a battery partnership with the U.S. carmaker. "I believe only geniuses can hold onto big visions, and a genius I know is Elon Musk," Kazuhiro Tsuga said at an event for young entrepreneurs. The remarks on Musk come as Panasonic and Tesla Inc are in talks to expand their joint battery plant in Nevada after production troubles and delays at Tesla strained their partnership over the past few years.
Investors are selling in Tuesday's pre-market, following a strong start to the trading week yesterday and an overall bullish environment over the past couple weeks.
The stock market has been extremely volatile so far this year, and for many investors, the news has been extremely bad. Here, we'll look at the three top stocks in the Nasdaq 100 and see if they have room to run further. Zoom Video Communications (NASDAQ: ZM) is a recent entrant to the Nasdaq 100, having just joined the index in April.
The rapid climatic change has played a major role in spurring the green revolution in the energy sector and this will drive clean energy stocks in 2020.
Tesla delivered far more vehicles than analysts were expecting last quarter. However, this news doesn't tell investors anything about what really matters: long-term demand for Tesla's products.
This analyst thinks the automaker's annual revenue will surge to $100 billion in the years ahead, helping justify a higher stock price.
Admittedly, trying to understand what goes on inside the mind of Tesla (NASDAQ: TSLA) CEO Elon Musk is probably a fruitless endeavor. There's no denying that he's a visionary; but his thought process can vacillate almost as wildly as Tesla's share price. On Valentine's Day (Feb. 14), a filing with the Securities and Exchange Commission showed that Musk had purchased 13,037 shares of Tesla for an average price of $767.
The day's jump increased Tesla's stock market value by $30 billion (24 billion pounds), eclipsing the entire value of Ford Motor Co , currently at $25 billion. JMP Securities increased its price target to $1,500 from $1,050 after Tesla on Thursday reported higher-than-expected second-quarter vehicle deliveries, defying plummeting sales in the wider auto industry as the coronavirus pandemic slammed the global economy. "We believe that the question to be considered is not whether the stock is expensive on current valuation measures, but what the company's growth and competitive position signal about the stock's potential for the next several years," JMP Securities analyst Joseph Osha wrote in a client note.
Shares of electric-car maker Tesla (NASDAQ: TSLA) rocketed 29.3% in June, propelling the company's stock price above $1,000 a share for the first time ever, according to data from S&P Global Market Intelligence. Tesla's 2020 performance represents a head-spinning turnaround from 2018, when the stock price basically went nowhere, and 2019, when its share price plummeted below $200 a share in May and spent most of the rest of the year climbing out of the hole. On June 8, news broke that the Chinese version of Tesla's Model 3 -- which is manufactured in Shanghai -- saw record-breaking sales in May.
Tesla is now the most valuable car maker “of all time”. And with combined market caps of some $70 billion, Uber and Lyft are also severely disrupting the giant auto industry
All major indices gained ground during regular trading, while tech stocks did even better. Such is the mood on Wall Street regarding the health of technology companies. It's not hard to find bullish sentiment, jockeying to push tech shares higher.
The stock market enjoyed a big bull market on Monday, and the Nasdaq helped lead the way. The Nasdaq Composite (NASDAQINDEX: ^IXIC) index climbed more than 2%, and the Nasdaq 100's gains amounted to 2.5% by the end of the day. The name of the game for Nasdaq investors in 2020 has been momentum, as winning stocks have tended to keep winning.
(Bloomberg) -- Remember when Tesla Inc.’s market value surpassed General Motors Co.? That was just in October, though investors can’t be blamed for thinking it was a lifetime ago.The electric vehicle maker’s valuation has added the combined value of the Detroit Three -- GM, Ford Motor Co. and Fiat Chrysler -- in just five trading days through Monday. Tesla has grown by an average $14 billion on each of those days.Tesla shares have been on a searing rally this year, recovering spectacularly from a steep pandemic-related sell-off, helped most recently by second-quarter delivery numbers that exceeded estimates. In the past week, the company has roughly gained the value of Fiat Chrysler Automobiles NV every single day.While skeptics have said the stock’s current pace is detaching from reality and being fueled by the “power of the narrative,” believers abound.“There is definitely a significant retail component that is driving shares higher,” Wedbush Securities analyst Daniel Ives said in an interview, referring to individual investors trading on platforms such as Robinhood.Still, a lot of big institutional investors now also want a piece of Tesla and the electric vehicle market, he said. “In a Covid-19 pandemic and a dark macro environment, the company just put up a 90,000 delivery number, especially when other automakers are seeing herculean challenges.”Tesla said July 2 it delivered 90,650 cars in the second quarter, which compared with analysts’ average estimate for about 83,000 units.The eagerness of big money to get into Tesla was also noted by Roth Capital Partners’ Craig Irwin, who said the company’s valuation was being driven by fund managers who have Tesla grouped with Netflix Inc., Amazon.com Inc., Facebook Inc. and the like, and were valuing it as a large-cap growth stock.“Those managers do not understand that this is not a winner-takes-all industry that those other names are,” Irwin said, noting that there are more than 180 electric cars that are slated to come out by 2025. “There have been some duds along the way, but you can be sure there will be some winners in those 180.”Tesla shares have gained at least 5% in four out of five sessions through Monday. While it may not be unusual for a company that has had one-day 20% gains twice in its history, the surge shows a consistency that wasn’t seen before. It’s the first time the stock has posted four out of five sessions with gains of such magnitude.The latest rally has brought Tesla’s gains this year to $170 billion, an amount that exceeds the market capitalization of all but 30 companies in the S&P 500.“Tesla’s valuation doesn’t make sense by any traditional measure,” said Ivan Feinseth of Tigress Financial Partners. However, “it is not a traditional company, so how do you put a traditional measure to it?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Sunrun (NASDAQ: RUN), the nation's leading residential solar supplier, announced it is acquiring rival Vivint Solar (NYSE: VSLR) for $3.2 billion, including debt, in an all-stock deal. Sunrun says the deal will provide $90 million in annual cost synergies, and the combined company would have almost 500,000 customers. The move will expand Sunrun's lead over Tesla (NASDAQ: TSLA), which has been working to grow its Solar Roof and energy storage product offerings.
Tesla stock has seen big some of the most notable gains during this historic market rally. Long-time Tesla bull Ross Gerber discusses what he thinks Tesla and Elon Musk are doing right, and what investors need to keep an eye out for in terms of deliveries over the next year.
We entered into the third quarter last week and clean energy stocks and ETFs stood out again.