Bullish Billionaire Ron Baron Bets Big On Tesla Motors

Baron had collected about a $300 million stake in Tesla over the past three years.

Reuters stated a day earlier a source with direct knowledge of the matter saying that Samsung SDI was making progress in talks with Tesla to supply batteries for the electric auto, in addition to Tesla’s energy storage systems. “They’re not a vehicle company”, he said, but he sees Apple’s electric auto as a direct competitor.

The average true range of Tesla Motors, Inc.’s (TSLA) is recorded at 6.56 and the relative strength index of the stock stands 45.98. Moreover, Zevenbergen Capital Investments Llc has 6.09% invested in the company for 623,855 shares. This accelerated options activity comes as Tesla stock jumps 1.6% at $236.13, after CEO Elon Musk effectively put to rest recent rumors of which company will be supplying batteries for the Model 3, tweeting: Drilling down on today’s options activity, TSLA’s June 235 and July 225 puts have seen the most action, where two symmetrical blocks were simultaneously opened on the International Securities Exchange (ISE) earlier. The company has a market cap of $36.21 billion. Tesla Motors has a 52 week low of $141.05 and a 52 week high of $286.65. The stock is trading lower its 50-day moving averages of 226.46 and above 200-day moving averages of 215.88.

Tesla Motors (NASDAQ:TSLA) last posted its earnings results on Wednesday, May 4th. JPMorgan Chase & Co. restated an “underweight” rating and issued a $170.00 target price (up previously from $155.00) on shares of Tesla Motors in a research note on Tuesday, April 19th. During the same quarter in the prior year, the business earned ($0.36) EPS. The firm had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.61 billion.

While considering growth estimates of the company, it has next quarter growth estimates of 175.90% whereas during current quarter it has 29.20% estimations over growth, comparing to the estimations of 135.20% during current year and 308.60% for next year. This year, they’re doing $8 or $9 billion. The Average sales targets are measured and based on the consensus of 18 brokerage companies, according to data provided by Thomson/First Call.

The source said Tesla, which presently buys batteries from Panasonic, was likely to add Samsung SDI as a supplier for Model 3 if and when Tesla’s battery plant were not able to produce enough batteries to meet demand. The company now has an average rating of “Hold” and a consensus target price of $277.59.