Being called “America’s fourth automaker” is good for stock prices. That’s what Tesla was recently labeled in a report from Morgan Stanley and it caused their stock to shoot up nearly 20% to close at $27.75. It also doesn’t hurt that they’re projected to hit $70 by the end of the year.
Morgan Stanley sites increasing fuel costs and major government backing as reasons that Tesla could break into the top US automaker bracket normally reserved for Ford, GM, and Chrysler.
Many are still skeptical of EVs because they aren’t yet cost effective over gasoline and a large-scale charging infrastructure hasn’t been set up. “As long as we’re still in a world where we don’t have a vastly expanded infrastructure, in a world where gasoline is still cheap enough, the mainstream is not going to embrace them. Consumer behavior is affected first and foremost by price.” said Ed Kim, director of industry analysis with AutoPacific.
If gas prices continue to rise, it’s likely that Tesla’s stock will continue along with it.
[via The Huffington Post]