Tesla shares inch closer to Elon Musk's $420 take-private offer

  • At roughly $74 billion, Tesla's market capitalization tops by about $20 billion that of the biggest US car manufacturer General Motors.
File photo of Tesla's first electric pickup truck. (via REUTERS)
File photo of Tesla's first electric pickup truck.

Shares of Tesla Inc hit a fresh record high for the third straight session on Friday, and were just $7 shy from the $420 per share price at which founder Elon Musk sought to take the electric carmaker private more than a year ago.

The recent run-up is a stunning turnaround for the shares, triggered by a rare quarterly profit in October, news of production ramp-up in its China factory and upbeat early deposits for its recently launched electric pickup truck.

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon100 kWh Range Icon570 km
₹70 Lakhs - 1 Cr
Alert Me When Launched
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 40 Lakhs
Alert Me When Launched
Hyundai Kona Electric 2024 (HT Auto photo)
UPCOMING
BatteryCapacity Icon64.8 kWh Range Icon418 Km
₹ 25 Lakhs
Alert Me When Launched
Hyundai Kona Electric (HT Auto photo)
BatteryCapacity Icon39.2 kWh Range Icon452 km
₹ 23.79 - 23.98 Lakhs
Compare
View Offers
Ford Mustang Mach E (HT Auto photo)
UPCOMING
₹ 70 Lakhs
Alert Me When Launched
Force Motors Gurkha (HT Auto photo)
Engine Icon2596.0 cc FuelType IconDiesel
₹ 13.59 Lakhs
Compare
View Offers

The shares have climbed about 40% since the earnings. At roughly $74 billion, the company's market capitalization tops by about $20 billion that of the biggest U.S. automaker by production, General Motors Co, and is nearly twice that of rival Ford Motor Co.

But the tweet in August 2018 that he had "funding secured" to take Tesla private at $420 per share finally cost Musk and the company $20 million in fines each by the U.S. Securities and Exchange Commision.

Wall Street remains divided, with 13 brokerages recommending "sell" or lower, and 11 rating the stock "buy" or higher. Nine have a "hold" rating.

"Given the clash between Elon Musk's long-term goals/vision and the near-term fundamentals, Tesla stock is the ultimate sentiment pendulum," analysts at RBC Capital Markets wrote on Friday, hiking its price target by $70 to $290.

RBC is the 10th brokerage to boost its price target in the last 10 days, according to Refinitiv data.

Tesla's shares were up 2.2% at $413 on Friday, trading 46% higher than Wall Street's current median price target.

First Published Date: 21 Dec 2019, 13:23 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.