Tesla has received a golden chance to boost sales in China after obtaining license plate in Shehzen.
In a recent press release made by Bloomberg, it was made evident that Tesla Motors currently is trading at a share price of $200.00 which is a massive step towards success as the reason given for this elevation is a positive news update from China. A program in Shehzhen is scheduled to be held for which the company has successfully managed to obtain a license. This step is a huge step towards the auto making company’s favor keeping in mind the previous difficult time that the company has been facing in the financial market regarding sales in the Asian country.
This new license that Tesla Motors has been successful in attaining is a special one that is given to only a few selected companies. Through this system, the company will be able to increase its production of cars and new electric vehicles will be manufactured. This is meant to work towards the auto-making company’s favor as companies are unable to obtain regular plates easily.
Keeping in mind the huge milestone that Tesla has been prosperous with obtaining, many equity analyst firms have made coverage on the electric cars producers and on an average most of them have increased their ratings on the company’s stock.
Analysts from Stifel analyst firm has closely covered the recent developments in the stock of the Model S makers and have presented a ‘buy’ rating to shares of the company. The price target that has been set by the same analysts has reached $400 which shows that the analysts are very optimistic about the smart cars and their near future. The current price target that has been granted to the company is the highest target that has so far been given to any company under coverage of analysts.
Analysts at Stifel commented on the success of Tesla and declared that this is just a small step towards progressive sales in China and that the difficult time that the company was facing in the country is now over. The analysts have called this a ‘minor’ success of the company and have also said that this will go a long way for the company which has been trying to penetrate properly into the Asian region. This has been marked as a golden chance for the company to increase its sales alongside the other ongoing plans of the firm in the country.
Analysts have previously been concerned about Tesla’s performance in China as the expected sales were not being made and the company has only faced loss from the country.