Cashtaggers Suggest $TSLA Gigafactory Partners
Tesla longs must feel like they’re on a SpaceX Falcon. Since CEO Elon Musk teased details of a gigafactory on Tesla’s Feb. 19 earnings call, shares have skyrocketed 28% to nearly $260 per share.
Yesterday, a $320 price target from a Morgan Stanley analyst drove the stock up nearly 14%. Helping fuel today’s gains are bullish articles in Forbes, TheStreet.com and Bloomberg exploring the analyst’s thesis that Tesla’s battery manufacturing facility will disrupt the $360 Billion-a-year power industry.
— Caroline Keim (@Keimcee) Feb. 26 at 10:55 AM
$TSLA 300-then 400- now it looks like it can topple google someday.
— Bob (@LarryStarsky) Feb. 26 at 10:40 AM
Elon Musk has promised more details this week. And nearly every word he utters this year has driven the stock higher.
Still, many investors fear Tesla can’t sustain the hype. The company has a nearly $32 Billion Market Cap, given its intra-day price of around $258, and price to forward 2015 Earnings Ratio of nearly 68X, according to CapitalIQ data published by Yahoo Finance.
$TSLA now showing overbought signals in every time frame. Top maybe in. coincides with our tech analysis on nasdaq falling.
— StandpointCapitalLLC (@StandpointCapitalLLC) Feb. 26 at 10:18 AM
$TSLA The point at which your friends want to shotgun beers at 2am when you are already tanked. Party isn't over, but the hangover is near.
— Mike (@CrimeD34) Feb. 26 at 09:44 AM
Investors concerned that the $TSLA battery trade is overheated are now trying to pinpoint potential partners in the gigafactory whom will benefit from the ultimate announcement.
Panasonic, $PC, is the obvious choice. The Japanese company, which trades on the Tokyo exchange but no longer trades on the New York Stock Exchange, is Tesla’s current supplier of lithium ion batteries. A report from Japanese newspaper Nikkei said that Panasonic will join with other Japanese suppliers to fund the factory.
Cashtaggers are speculating that Western Lithium, $WLCDF may also be involved after the Wall Street Journal reported that Tesla is scouting locations for its plant in Nevada. Western Lithium is building a plant to test the viability of extracting lithium from clay deposits in Nevada.
— Steven, MS (@ArmenianBull9) Feb. 26 at 10:58 AM
Other cashtaggers still believe that Apple, $AAPL, may somehow be involved. Musk confirmed to news sources that he met with Apple executives last year but did not disclose the nature of the conversations. In an interview on Bloomberg television, Musk said it was very unlikely that Tesla would sell to anyone. With mergers off the table, traders began speculating that the conversations involved the gigafactory.
— Cow (@Cow) Feb. 26 at 10:36 AM
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