Tesla stock takes off after analyst raises rating

The fun started when Wunderlich Securities analyst Theodore O'Neill took a tour of Tesla's California headquarters factory on Friday.

 

It was an electrifying Monday on the Nasdaq market. As A123 plummeted on news of a battery recall, shares of Tesla Motors (TSLA) made like a roadster with the pedal to the metal, closing with a gain of almost 10 percent.

The fun started when Wunderlich Securities analyst Theodore O'Neill took a tour of Tesla's California headquarters factory on Friday. He told the AP that production of the Model S is "at or ahead of schedule," and that Tesla may be able to surpass its goal of making 5,000 vehicles in 2012. O'Neill raised his rating on Tesla shares to "buy" from "hold," and raised his price target to $49 from $30.

"There is no reason from a production standpoint why it can't immediately ramp to 5,000 cars per quarter," he wrote. "The electric car is significantly simpler to produce than a regular car. It will only be limited by components in the supply chain."

O'Neill added that he no longer thinks Tesla will need to raise money in 2013. Analysts expect the company to report $561 million in revenue for the year, according to FactSet.

 

Image: Tesla