• Nov 12, 2010
Tesla Motors, the U.S.-based electric automaker partially backed by Toyota and Daimler, let 13.3 million shares fly in its IPO back in June. The opening price of $17 per share was higher than anticipated, but that didn't stop investors from, well, investing. Within a day, the shares shot up to $23.89 – a hefty increase of 40.53 percent.

Now, nearly five months later, the surge continues as, on Thursday, the automaker's shares soared to $29.36 – a jump of 73 percent over its IPO price. The rise, at least in part, is attributed to the positive words of JPMorgan Chase analyst Himanshu Patel, who wrote in a report on Wednesday, "We are bullish on Tesla Motors as we believe it is at the vanguard of improving battery costs/durability."


Photo by Brad Wood / Copyright ©2010 Weblogs, Inc.
[Source: Detroit Free Press]


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  • 22 Comments
      • 4 Years Ago
      I'd like to be less cynical, but I'm not sure I'd trust a financial analyst to know the difference between his ass and a manganese spinel cathode...
        • 4 Years Ago
        This.

        Why this crazy speculation over a company that really does not know how to build a car? The car companies will slaughter them. They've just got some technology for the EVs they've developed and even that technology is based on technology licensed from AC Propulsion.

        Tesla *might* succeed but I don't think it is a great bet. If EVs catch on, the big car companies will just start selling them too . . . and they are MUCH better at building cars cheaply & efficiently.
        • 4 Years Ago
        Spec, you think you know more about building cars than Tesla? Seriously?

        you guys are taking this anti-Musk stuff too far.
        • 4 Years Ago
        If you listen to the old press releases from Tesla... you would understand how they view their definition of success.

        They did a good job of being a proof of concept to show automakers that demand was there and that compromising performance or styling was Not necessary.

        And they looked forward to the day when automakers were making EVs because the charging infrastructure would expand and battery cell prices would drop. And Tesla would be more successful than they are right now. Competition is not a bad thing in the beginning.
      • 4 Years Ago
      Please do a follow-up article when it goes way back down, just to be objective and keep space filled here when there are no new CRZ pictures. News flash- Nissan releases Leaf pack warranty and it has no coverage for capacity at all. Actually, that has been out for a while but you guys missed that one searching for new CRZ pics, just like you missed the AV gouging and other relevant articles:)
        • 4 Years Ago
        http://www.mynissanleaf.com/viewtopic.php?f=23&t=1711
        http://home.earthlink.net/~michael_walsh/images/773306-2011-Nissan-Leaf-Warranty.pdf

        LITHIUM–ION BATTERY COVERAGE
        The Lithium-Ion coverage period is 96 months or
        100,000 miles, whichever comes first. This warranty
        covers any repairs needed to correct defects
        in materials or workmanship subject to the exclusions
        listed under the heading WHAT IS NOT
        COVERED. This warranty period is 96 months or
        100,000 miles, whichever comes first.

        GRADUAL CAPACITY LOSS
        The Lithium-ion battery (EV battery), like all lithium-ion
        batteries, will experience gradual capacity loss with time
        and use. Loss of battery capacity due to or resulting
        from gradual capacity loss is NOT covered under this
        warranty. See your OWNER’S MANUAL for important
        tips on how to maximize the life and capacity of the
        “Lithium-ion battery.”

        --------------------

        The way I read this, is that if your Leaf battery capacity failing beyond what is considered "gradual" then you have a warranty claim. Yes, you're right, the exact curve that defines "gradual" has not been released yet.

        But when they hit the roads and begin driving many miles. The average reduction in capacity for all Leaf owners can be taken as the "gradual" reduction.

        So if your Leaf is below the std dev of the mean curve, you can claim that defects
        in materials or workmanship are responsible.

        Bottom line, they mention it. But no, they don't go into details. That is for the first round of lawyers to sort out.

        ***Just like you cannot file a warranty claim on your engine if you start getting worse MPG. You have to prove that a particular part has failed beyond the normal wear and tear of the engine. ***
        • 4 Years Ago
        Post an article because, at this time, I don't believe you and neither should anyone else.
        • 4 Years Ago
        Fill us in mark .... post an article
        • 4 Years Ago
        Believe what? The Leaf pack warranty only covers mfg defects on cells and specifically states that capacity is not covered, the warranty at this time is that straight forward and clear. ABG finally did a piece of the AV EVSE prices after being poked 20 times, perhaps they will do something on the Leaf pack warranty. There is "talk" of a capacity curve for the Leaf pack warranty but at this point it is not in writing. The Leaf pack warranty was posted in the buyer disclaimers. mynissanleaf.com has it posted in entirety.
      • 4 Years Ago
      Don't worry you Tesla hater, the stock will go down enough time between now and Model S. This only means that some trader is trying to make a buck on Tesla stock.

      The real action will begin in 2012.
      natdalton7
      • 3 Years Ago
      Up until yesterday I hadn't heard of Tesla motors. I was at the store buying a small electric generator (http://www.joesqualitytools.com/generators) and over heard a group talking about them. It seems that this company is doing well for themselves and hopefully the trend continues. I will have to do more research to see how things are going now.
      • 4 Years Ago
      would they lie...

      as I've said before Tesla stock rises on illusion. investment from panasonic, number of cars they will make for toyota, investment from toyota, top line result ignoring the bottom line. Tesla is a huge cash burner that has always operated on a massive loss. the roadster has not earned back development cost and never will.
      the toyota deal is probably around 30k$ per car, they might well lose money on each of those too. ACpropulsion charges 55k$ for similar conversion. not that it's impossible, just that tesla has so far been very bad at cost effective.
      and betting half a billion on getting 10000+ sales per year of the model S... that's quite a gamble. with no significant sales network. I fully expect them to crash and burn. I hope they make it, they might start to make relevant cars if they do. the model S certainly isn't it. simply too heavy, too conventional.
      in other words the stock price is entirely fictitious. a 3bn$ evaluation of a company worth less than 0$
      • 4 Years Ago
      "We are bullish on Tesla Motors as we believe it is at the vanguard of improving battery costs/durability." . . . that is insane. Let's start with this:
      TESLA DOES NOT MAKE BATTERIES!
        • 4 Years Ago
        Tesla uses laptop cells, but their battery pack is very durable, mainly because it has very very good battery temperature controls. Way better than Volt or Leaf.

        @Joeviocoe, Model S will have those 18650 cells, but they are "heavily modified" (whatever that means), not standard stuff.
        • 4 Years Ago
        Tesla makes battery packs. And making them cheaply? Tesla has wicked expensive battery pack since they use so many cells. Durability? Tesla has the WORST pack as far as durability goes since they used old school laptop batteries that are only designed to last 3 to 5 years.

        This analyst is an idiot. I suspect they shorted Tesla or they have shares that they want to sell.
        • 4 Years Ago
        I thought the Model S would switch to Prismatic
        • 4 Years Ago
        I don't think Toyoda is interested in what Tesla did with the Roadster. They are interested in the technology from the Model S, which is NOT 18650 cells strung together.
      • 4 Years Ago
      People hate Tesla because they hate 2 things.

      Cars that cost over $100k - because they cater to the rich elite.
      and
      Elon Musk - because he represents an evil typecast of a billionaire CEO that kicked out the brilliant founder/inventor Eberhard.

      I however think those are lazy conclusions.

      A start up EV company has a MUCH better chance at success by entering the high end market rather than the economy market as SO MANY EV startups have tried and failed before.

      and

      When you follow the details on why Martin was fired, Elon made a decision that was better for the company and better for the EV revolution. NOT compromising with hybrid powertrains and 2 speed gearboxes. IMHO
        • 4 Years Ago
        Your first 2 points are industry standard for a startup company. Over budget and late. I cannot think of a quality product from a startup company that was on time and priced as anticipated.

        A startup automobile company too.

        The 3rd point is based on other peoples misconceptions... it is NOT a negative for Tesla. Integration and modification of existing technology is itself worthy of praise. Automakers today are not Reinventing the internal combustion engine. They are simply tweaking what was invented over 100 years ago.
        • 4 Years Ago
        Eberhard was not that "brilliant", he plain out lied how well (bad) stuff were going to the board of the Tesla, and that was why he got booted. No financial skills whatsoever. People probably don't just know how bad shape Eberhard was leading the Tesla, without Elon interrupting this Tesla would have been in bankruptcy before first year of Roadster production had ended.
        • 4 Years Ago
        Those may be popular lay views but they are pretty superficial views.

        I don't trust Tesla because:
        1) The took forever to produce their first product which had repeated inefficient redesigns of a lot of things.
        2) It came in at way over budget.
        3) They don't have as much technology as many think. The car Chassis & body is from Lotus. The fundamental controller technology is from AC propulsion. The batteries are off-the-shelf 18650s. Granted, they build a very nice battery management system (with both thermal and electrical aspects) . . . but that is partially because the batteries that were available at the time were not so good & needed it.
      • 4 Years Ago
      Im ready to work for them as a long-term test driver. These compagnies use to test the drivability, reliance, new components testing and calibration, etc, etc. I have a 110 volts outlet and also a 220 volts outlet at my house. I suggest to them to try some miniature high efficiency integrated, adapted, installed small gasoline and/or diesel or methanol or ethanol or a mix of these liquid fuels and also small propane and/or naTURAL LPG BUTANE AND/OR PROPANE GAZOOUS FUELS that fed a small electric generator for performance oriented modern twintieth century sport cars for the future with less pollution and a high selling price to the corporate, club, or normal driving consumers on the roads.
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