Tesla’s stock continued its recent recovery on Tuesday. It rose for the third session in a row as investors considered analyst comments, developments in energy and strategic changes to senior management.
Tesla’s shares are up 1.5% to $423.05. Tesla shares were up 1.5% at $423.05. The overall market had a mixed day, with S&P500 flat, and Dow Jones Industrial Average trading over 50,000.
This latest increase follows gains of 3.5% Friday and 1.5% Monday. After recent declines, the rebound was a welcome relief.
Tesla’s closing price on Thursday was $397.05, its lowest since November.
Other tech giants, on the other hand, had a rough session Tuesday. Alphabet shares, Nvidia’s, AMD’s and Apple’s were all down.
Teala’s stock stabilizes after earnings weakness
Tesla’s shares are struggling to grow since it reported its fourth quarter earnings on 28 January.
Despite the fact that Wall Street’s expectations were exceeded, investor caution has kept stock prices under pressure.
Shares were lower than 3% on Tuesday, following the release of earnings.
Investors have stated that they are waiting to see more progress in the areas of artificial intelligence and autonomous vehicles before increasing stock valuations.
Elon Musk, Tesla’s chief executive officer, has been focusing more on the AI, robotics, and autonomous aspects of Tesla. But analysts say that tangible achievements in these areas are key for sustaining an upward trend over time.
Morgan Stanley highlights the solar market
Morgan Stanley, which reiterated Tuesday’s positive momentum for Tesla, maintained its Equalweight ratings and a price target of $415, which is close to recent stock trading levels.
This was in response to Tesla’s announcement that it would add up to 100 gigawatts (or more) of solar production capacity.
Morgan Stanley stated that the expansion is in line with Musk’s vision to integrate renewable energy, data infrastructure and energy storage.
Tesla has a relatively healthy balance sheet, the firm said, noting that it had more cash on hand than debt, and a ratio of currents (2.16), which indicates good short-term liquidity.
Morgan Stanley stated that vertical integration of solar manufacturing can support Tesla’s plans for developing solar-powered data centers and creating synergies between its energy storage company.
The bank estimates that Tesla Solar’s full potential could result in an equity value of $20 to $50 billion, which is equivalent to $6 to 14 per share.
Tesla values its energy business currently at around $140 billion or about $40 per share.
Morgan Stanley stated that the longer-term value and growth of Tesla could justify the strategy.
Changes in leadership signal pressure on operations
Tesla has also made a major management shift in its auto operations.
Bloomberg reported that Joe Ward, Tesla’s Vice President for Europe, Middle East, and Africa will be taking over the leadership of Tesla’s global service, sales and delivery organization.
Ward was appointed as Tesla’s new CEO at a time when the electric car market in America is slowing down and sales are declining in Europe.
In addition, the company increased its investment in autonomous driving, humanoid robotics and artificial intelligence. This has reshaped internal priorities.
This move comes after the departure of Tesla’s North American head of Sales and follows a string of high-ranking exits over recent years.
Omead Afshar, a long-time Musk employee who oversaw sales and manufacturing operations in North America, left the company last year.
David Lau, Tesla’s former software director, as well as Milan Kovac who headed the Optimus robotic engineering program will also be leaving in 2025.
This original article appeared originally on ICD.
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