Tesla (TSLA) began 2018 on a bullish note, with its stock rising 13.8% in January. However, some of these gains were erased in February as its stock fell 3.2% in the month. Nevertheless, TSLA has managed to remain in positive territory on a quarter-to-date basis so far.
As of March 12, TSLA has risen 11% quarter-to-date compared to the 4.1% rise seen in the S&P 500 benchmark. Meanwhile, the stocks of mainstream American auto companies (IYK) General Motors (GM) and Ford Motor Company (F) have fallen 7.7% and 12.5%, respectively, quarter-to-date. During the same period, Italian-American auto giant Fiat Chrysler Automobiles (FCAU) has yielded a stellar return of 18.8%.
On March 12, Tesla stock inched up by 5.6% to $345.51. According to a recent Bloomberg report, the company halted the production of its Model 3 from February 20 to February 24. The report cited a statement emailed by a Tesla spokesperson saying, “These periods are used to improve automation and systematically address bottlenecks in order to increase production rates. This is not unusual and is in fact common in production ramps like this.”
Expectations that this production halt will help Tesla resolve its Model 3 production bottlenecks and boost its future production rate could be one of the reasons for the recent optimism in its stock.
In this series
In this series, we’ll explore recent updates related to Tesla and what major research companies are recommending for its stock. We’ll also analyze the recent trends in the company’s valuation multiples.