Tesla Motors, the U.S.-based electric automaker partially backed by Toyota and Daimler, let 13.3 million shares loose in its IPO back in June of 2010. The opening price of $17 per share may have been higher than anticipated but, within a day, the stock was trading at $23.89. In November of last year, Tesla shares soared to $29.36 and by mid-December, prices exceeded the $30 mark.
On Monday, J.P. Morgan analyst Himanshu Patel thinks this is the start of a longterm trend. Patel has predicted that share prices for Tesla Motors will continue along an upward trend, possibly hitting $50 by 2014. Patel's prediction is based on two key assumptions: the Model S arrives on schedule for mid-2012 deliveries and that Tesla's production costs remain lower than most other luxury automakers. Analyst Patel issued this statement summarizing his take on Tesla:
And here's an obvious disclaimer: AutoblogGreen is an automotive site, not a financial one. The views and opinions expressed above are those of Himanshu Patel. We don't give stock advice, for that, we turn to the so-called "experts" in the financial field.
We continue to believe the majority of the investment community and the majority of the automotive industry is substantially underrating Tesla's potential.