Tesla Motors Inc. (NASDAQ:TSLA) has been on the receiving end in the recent month losing value in the wake of oil prices plummeting to all-time lows, forcing CEO, Elon Musk, to lose more than $1 billion in holdings. Contrary to opinion, Wall Street remains upbeat on Tesla according to CNBC’s, John Maloney, on the belief that the stock has been miss-valued in the wake of oil prices dropping.
“Analysts like Tesla Motors Inc. (NASDAQ:TSLA) again after 20% drop this month; it turns out they don’t just like it; they love it. They predict it is going to be the best performer of 2015 beating out Apple, Priceline. Any tech stock you name Tesla Motors Inc. (NASDAQ:TSLA) is going to beat it,” said Mr. Maloney.
Tesla’s woes in the market begun with the drop of oil prices as investors continued to bet that gas guzzlers will offer competition to the company’s high-end cars in terms of sales. Maloney reiterates analyst are not buying that argument; vehemently opposed to the current levels that the stock is trading at.
Analysts base their estimates on oil prices stabilizing in 2015 an effect that should give Tesla Motors Inc. (NASDAQ:TSLA)’s stock momentum to surge to highs of $290 that it clocked in September.
“Analysts think it is going to rally another 30% and get even higher than what it was before the oil dropped. Analysts think Tesla Motors Inc. (NASDAQ:TSLA) is primarily a technology company. Its luxury vehicles are going to be purchased no matter where the price of gasoline is and so they see good things for Tesla next year,” said Mr. Maloney
It waits to be seen if Tesla can be able to enjoy high valuation next year as competition is also expected to play a big role as more players continue to enter the electric car space. Tesla Motors Inc. (NASDAQ:TSLA) has never had any relationship with oil prices in the past. Since the drop of oil begun a month ago, the stock has shed more than 17% in value becoming the second worst performer in the Nasdaq 100 index.
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