Tesla shares jump after analyst pumps stock

The 12-month consensus target price for the stock is $293.07, which reflects an upside potential of 15.21% over the current price.

Tesla will essentially be able to sell miles, in addition to selling cars, Jonas adds. But, in case of Tesla, a jump in the stock price was seen, which is mainly because analysts are more concerned over Tesla’s cash burn rate rather than stock dilution.

On Friday Trip Chowdhry of Global Equities Research said that he thought the $242 that Tesla Motors sold new shares for was a good entry point for investors.

Although the company officially has no plans to do something similar to the “Tesla Mobility” unit that Jonas’ envisions, the analyst ” we would be surprised if Tesla did not share formalized business plans on shared mobility within the next 12 to 18 months”.

Brokerage firm Morgan Stanley Maintains its rating on Tesla Motors(NASDAQ:TSLA). “The rapid growth of on-demand marketplaces is reducing the traditional friction of finding customers, enabling a new class of entrepreneurs to find a hungry market for their products and services”, said Alex Chriss, vice president and general manager of Self-Employed Solutions at Intuit.

A self-driving Tesla may have more benefits over other self-driving cars in the works due to the company’s focus on technology.

The electric vehicle company, whose mission is to further “accelerate the transition to electric and renewable and sustainable energy”, would see a shared mobility model as critical, Jonas noted. The first phase is about making its cars semi-autonomous, which means that vehicles will still require human assistance.

“The holy grail of shared mobility is replacing the mistake-prone, tired and expensive human driver with a robot that drives with greater accuracy and precision”, Jonas wrote.

In its results for the second quarter of fiscal year 2015 (2QFY15), reported on August 5, Tesla revealed loss per share of $0.48, compared to earnings per share (EPS) of 11 cents, in 2QFY14. The last phase is about the fully autonomous vehicles which are expected to hit roads in ten years.

The price target hike flies in the face of what appears to be the conventional line on Tesla Motors (NASDAQ:TSLA). Mr. Jonas thinks that the business opportunity could triple Tesla’s potential revenue by 2029.

Musk: That’s an insightful question. Jonas notes that at that time no one had successfully launched an auto company in half a century, but today the Model S is a much desired vehicle with the best overall rating in Consumer Reports’ history and is the safest vehicle ever crash tested by NHTSA.

In other Tesla Motors news, VP Jerome M. Guillen sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, July 15th.

However, his competitors are taking no chances as they think he has the capability to accomplish it. That is why so many of them involving Audi, GM, BMW and Mercedes, are aimed at bringing their own 200-mile pure electric cars into the market in the time frame around 2018.