Tesla Gains as It Prepares Deliveries of Model S Car
Tesla Motors Inc. (TSLA) rose the most in almost a month as the maker of electric cars prepares to deliver its first Model S models this week.
The Palo Alto, California-based company led by Elon Musk increased 6.5 percent to $31.84 a share at the close in New York, the biggest gain since May 22.
The Model S, the company’s first model designed and built in-house, has a range as much as 300 miles (483 kilometers) per charge. The Model S has a base price of $57,400, half that of the company’s Roadster, a battery-electric sports car made under contract with Group Lotus Plc that debuted in 2008. Sales of the Roadster ended earlier this year.
“While we have been broadly encouraged by the company’s execution to date, we recognize that the stakes are high” with the Model S, Barclays Plc said in a report. “We continue to view the shares favorably ahead of what we consider is a multiyear product cycle.”
The Model S is being built at Tesla’s Fremont, California, plant that was previously a joint venture owned by Toyota Motor Corp. (7203) and the predecessor of General Motors Co. (GM) Toyota, Daimler AG and Panasonic Corp. (6752) are investors in Tesla.
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