Tesla Motors Inc (NASDAQ:TSLA) has reached new record highs today, cresting the $275 mark for the first time and soaring to nearly $285, up $14.31 on the day. The stock’s record highs were discussed on CNBC today, where prominent investor and analyst Jim Cramer declared that one of the reasons for the stock’s continued excellent performance is that it’s an exceptionally well managed stock.
“[…]This is one of the best run stocks I’ve ever seen. Great run stock. Some people know how to manage stocks. Bezos (Amazon.com, Inc. (NASDAQ:AMZN) CEO Jeff Bezos) knew how to manage a stock. Musk (Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk) knows how to manage a stock. There’s always a good data point, there’s always something that says ‘you know what, this upgrade…well it turns out that it’s really good,’” Cramer said.
One of those forthcoming upgrades is Tesla Motors Inc (NASDAQ:TSLA)’s plan for a $5 billion Gigafactory plant, the location of which is being fought over by several U.S states. It’s believed that plant could help drastically reduce the production costs of lithium-ion batteries within the next few years, by at least as much as 30% by 2017 to coincide with the release of the Model 3.
However that is the most conservative estimate, with a more ambitious one being that Tesla Motors Inc (NASDAQ:TSLA)’s electric vehicles could achieve cost parity or even superiority over internal combustion engine vehicles by 2020. Nor is it only Tesla Motors Inc (NASDAQ:TSLA) that is confident in what the Gigafactory will be able to do; Panasonic partnered with Tesla on the Gigafactory in July and is providing substantial investment in it, believed to eventually be as much as $1.6 billion.
As Cramer later added, he believes that between now and the end of 2014 he’ll have had to cover his Tesla Motors Inc (NASDAQ:TSLA) short, calling it too much of an animal. In a research note from Stifel Nicolaus analyst James Albertine earlier today, Tesla’s stock was upgraded from hold to buy status, with a monumental $400 price target.