Tesla Motors Inc (NASDAQ:TSLA) Rebounds Sharply
Tesla Motors Inc (NASDAQ:TSLA) stock zoomed up by a super impressive 16.5 percent during trading on December 3. This bump up in its valuation yesterday comes on top of already strong growth shown in the previous week in which the stock had jumped up by 19.7 percent. At close of business yesterday the stock was trading at $144.70 per share well short of its prior 52 week high price point of $194 per share.
The big jump in investor confidence in the stock so close to the sell-off the stock had experienced in the past couple of weeks, when news report emerged that couple of its Model S electric cars catching fire can be reasoned as direct result of few new positive developments.
The first is the clean chit that Tesla Motors Inc (NASDAQ:TSLA) Model S received from German Investigators on December 2, where in the authorities there indicated that they have closed down their investigations of the three reported incidents of Model S cars catching fire since they found no manufacturing defect. The second piece of good news was the immediate rating upgrade that the electric car maker received from a host of rating agencies. The first among those were from Morgan Stanley come out with a strong affirmation of the prospects of the firm.
The third and a more general reason on why the stock shot up was because the month of November has been relatively strong for most U.S based auto makers on the back of charged up sales fuelled by heavy incentives which the car manufactures doled out to commemorate Thanksgiving and Black Friday Sales. While Ford Motor Company (NYSE:F) has recorded a 7% increase in its sales during November, Chrysler Group LLC gained the most at 16% and General Motors Company (NYSE:GM) unit sales went up by 13% in comparison to last November sales.