Tesla Motors intends to keep growing and recently they found an ally to help them sustain their growth portfolio. Recently, Tesla joined forces with NRG Energy to help sure up the company’s electronic vehicular push into the next new frontier of electronic vehicular power drive.
Tesla Motors
As various analysts and investment companies continued seeing Tesla’s achievements as that of being high, the view is that the company has a very bright future ahead. Top analysts are touting that there is a strong possibility the stock will pick up and start doing well for the remainder of 2015.
In regular trading done yesterday, Tesla’s stock opened at $206.55 and climbed up higher by 2.61%. Still, after trading ended, it advanced further upward at 0.09%.
In 2014, the company’s stock closed at 53.28%, which was a higher margin. Company stock for the year-to-date figure went down 7.13%.
Tesla is experiencing low sales in China since 2014’s last quarter; however, Allan Musk, the organization’s CEO promises investors that the company will do everything in its power to get on the right road. A big issue as to why Tesla seems to be at a low in China is because of buyers concerns that have to do with range anxiety issues in that country.
However, investor concerns remain high and to be on the safe side they downgraded the stock price at a lower level under the $200 mark. The concern though mostly stems from a doubt in the mind of investors that Tesla will be unable to meet its selling target of 33,000 vehicles based on past underperformance experiences in the auto market.
Still, as 2015 progresses, Stifel’s analyst James Albertine went bullish when he gave a $400.00 price target on Tesla’s stock and a “buy” rating to go with it. Meanwhile, Barclays still kept their “equal” weight rating and their target pricing at $220.00. Robert A Baird and Company also chipped in when they gave the stock price of $275.00 as its price target and by maintaining an “outperform” rating as well.
NRG Energy
Although NRG is not an electronic auto manufacturer, still investors, analysts and all others concerned, should take the push they will give Tesla in the right direction seriously. While Tesla Motors is looking ahead at leading innovation in the motor industry, NRG Energy is concerned mainly with facilities that generate solar.
NRG’s market cap is already close to $9 billion and will continue growing if the company continues to expand its retail outlets. So far, it has some three million customers spread across the US, thus, making it one of the largest electric utilities company. The company is making strides in 10 different markets and it intends to enter into another 25 more in the near future. For its 2015 resolution, it is hoping to become the second largest solar rooftop installations company in the US, which is a feat it hopes to achieve by the end of the year. With Tesla Motors working hand in hand with them, NRG is hoping to build an infrastructure that will become the envy of other electronic companies.
Recently, Tudor Pickering moved the stock from a “hold” to “buy” rating. In addition, several additional analysts gave their views on NRG’s stock. The Street’s analysts placed a downgrade on the company stocks from one of “buy” to “hold.” Goldman Sachs analysts went ahead and downgraded the stocks from “buy” to being at “neutral” and they even went further to place a price target of $29.00 on it. Credit Suisse analysts see the stock as an “outperform” rating and placed it with a price target of $34.00. Barclay’s price target was standing at $40.00 but later lowered it to $39.00 while they list the stock as an “overweight” item. NRG has a $36.10 consensus target price with a “buy” average rating.
With a $35.57 one-year low and a $38.09 one-year high, NRG stocks went into trading on Wednesday with an opening price of $25.47. So far, it carries a moving average of $27.01 for its 50-day turnaround and for its 200-day the moving average is $29.92.
As these are yet early days to see if Tesla will rise to the challenge and make their stock a must buy, investors are closely watching to see if the company will pick up its profitability growth and remove any doubts of failure in the minds of the public. However, many other investors and analysts are of the view that the electronic car company will show great improvement now that it is working closely with NRG Energy.
