Tesla shares surge after earnings news
The company unveiled its 2014 deliveries forecast and beat analysts' expectations, sending the stock up.
Tesla Motors (TSLA) was up more than 9 percent Thursday to $212.22. It also hit a record intra-day high of $215.21.
The stock surged after hours on Wednesday after the company unveiled its 2014 deliveries forecast and beat fourth-quarter earnings expectations.
Tesla sees weekly production rates rising to 1,000 Model S vehicles from 600. It expects more than 55 percent vehicle delivery growth in 2014 and sees production at 7,400 vehicles in the first quarter.
Before the earnings announcement was published, the stock appeared to get a nice bump on speculation that Apple (AAPL) would buy Tesla. On Thursday evening, Musk confirmed to Bloomberg TV's Betty Liu that he was talking with Apple but would not say if it was about an acquisition. But he did say Tesla is "very unlikely" to go on sale.
Deutsche Bank's Dan Galves downgraded the stock to 'hold' from 'buy' on valuation, but raised his price target to $220 from $200.
"In addition to the tight valuation, we believe the ramp in operating expenses, uncertainty around the giga-factory, uncertainty around distribution network needs to support higher volumes, and multiple competitor vehicles entering the market will make it difficult for investors to get a clear picture of the true late-decade earnings power/margin profile of the company," Galves said in a note to clients. "We’d look to get more constructive again on pullbacks or if the stock remains range-bound for an extended period."
The stock is up 40 percent year-to-date.
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