Maybe it was the investment bank report that brought confidence, maybe it was the end of the days of heavy falls, and Tesla finally had a rebound.
On Tuesday Oct. 9, Eastern Time, Tesla opened high, sweeping away the previous day's record low, gaining nearly 1.9%, once above $266, up nearly 6.5% in the day.
Tesla closed down 4.35% on Monday, falling five days in a row to a four-month low. Bloomberg said Tesla's market value shrank by $10 billion a week.
Wall Street noted that there was no good news about Tesla on Wednesday, but after Monday's close, Maggie, the brokerage that had re-covered Tesla, took Tesla's winning rating and set the target price at $430, about 72% higher than Monday's closing price.
Judging from the target price, Macquarie is the most favours Tesla institution in Wall Street. According to Bloomberg, before Macquarie released the report, nine of the brokers covering Tesla gave them buy ratings, 12 held them, 13 sold them, and the average target price was only $291.65.
Macquarie analyst Maynard Um said in the report:
We see Tesla as a company that develops disruptive technologies, with long-term growth and equally disruptive markets for electric vehicles, energy storage and manufacturing energy, all with differentiated products and powerful brands.
Tesla is in the right track to achieve production targets and should be able to make profits in the second half of this year.
Um said Tesla would be able to overcome the debt challenge through multiple sources of cash, expected to receive $500 million to $600 million in government subsidies for clean energy in the second half of this year, continued sales growth for Model 3 would also enrich the company's cash, and Tesla had $1.2 billion in unused borrowing capacity.
Um believes investors should see Tesla as a technology company rather than a traditional carmaker, but he also acknowledges that Tesla CEO Mask's unusual behavior may worry investors, which is understandable. Musk's behavior may have a negative impact on Tesla's P/E ratio, but Musk will remain a key factor for Tesla in the foreseeable future.
The Wall Street news had previously mentioned that Musk had given himself and Tesla a criminal investigation by the U.S. Department of Justice for the privatisation scandal triggered by a tweet in August, and the Securities and Exchange Commission (SEC) also charged Musk with securities fraud in late September, causing Tesla to plummet in recent days.
Tesla's share price fell more than 13% after the SEC announced the charges on Sept. 27. On Sept. 28, the media reported that Musk refused to reconcile with the SEC and was preparing to respond. Tesla closed down about 14% that day, the biggest one-day decline in more than four years, with a market value loss of more than $7.3 billion.
Tesla's shares surged 17% on Oct. 1, the biggest one-day gain since May 2013, but have fallen since Oct. 2, following a settlement on Sept. 30. Tesla announced a record quarterly auto production on Tuesday, while pointing to trade-related challenges facing the Chinese market. Shares rose and fell more than 3% on the same day.
In October 4th, musk publicly referred to SEC as a "fat fed committee" in tweets. Forbes News said that the SEC was also investigating Tesla's production and profit targets, which would be more troublesome than the Mask Fartesla privatization of sources of funds guaranteed by Twitter case.
But Musk's tweets did not converge. On Oct. 5, his tweet further accused Wall Street tycoons like BlackRock of making huge profits by short-selling margins.
By the close of October 5, Tesla's share price had fallen nearly 17% in four days, almost all of which smoothed out all the gains after Musk's settlement with the SEC.
Tesla: I'm sorry Trump, I'm going to China, the exclusive article of Wall Street members, once pointed out that the "far water" of China's factories can not understand Tesla's "near fire", Tesla's "quick-acting medicine" may have to start from Musk. Whether it is canning marijuana or the impulse to privatize, it shows the unstable character of musk. More importantly, Tesla lacks No. 2 soul, while Apple's father, Steve Jobs, is "lucky" to have Cook.
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