Barclays preaches prudence on Tesla Motors


Barclays maintains a cautious approach to Tesla Motors (TSLA -3.2%) after meeting with management, reiterating its Equal-weight rating on the EV automaker.

The investment firm thinks the path to margin expansion will be slow and notes Tesla already has the benefit of the doubt on many valuation fronts.

It also goes with a more conservative estimate of the grid storage opportunity Tesla sits on, seeing a 20%-25% boost to valuation instead of a clean double.

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Comments (5)
  • Esekla
    , contributor
    Comments (4657) | Send Message
     
    Fair enough, accredited investors are apparently splitting the difference between a +25% and double valuation by taking an option on shares at 42.5% premium:

     

    http://seekingalpha.co...
    10 Mar 2014, 03:39 PM Reply Like
  • SharkDude
    , contributor
    Comments (766) | Send Message
     
    that 25% has been baked into the stock price 4x over already
    10 Mar 2014, 04:36 PM Reply Like
  • Esekla
    , contributor
    Comments (4657) | Send Message
     
    Well, no, at least the premium I was referring to represents a strike price of $360 per share, so that's a little over 50% up from today's price.
    10 Mar 2014, 05:16 PM Reply Like
  • csxstocks
    , contributor
    Comments (22) | Send Message
     
    Tesla stock is up big. Watch reasons why http://bit.ly/1dJwMgy
    10 Mar 2014, 05:44 PM Reply Like
  • runarbt
    , contributor
    Comments (235) | Send Message
     
    Promoting own youtube channel with lies.
    Stock unfortunately down 3% today.
    10 Mar 2014, 08:50 PM Reply Like
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