Tesla’s ‘low-controversy execution’ earns praise from Nomura
Tesla Inc.’s recent progress in a few key initiatives while showing increased efficiency in fulfilling its global order book – all in a relatively quiet manner – is music to the ears of one analyst.
“This is exactly the kind of low-controversy execution that we and many investors have hoped to see from Tesla for some time,” Nomura’s Christopher Eberle wrote.
Tesla recently received a new tax break in China while continuing to build its factory in the country, Eberle noted. He also pointed to carmaker’s launch of an in-house insurance offering. If Tesla can continue to hit both operational and financial targets, he sees an opportunity to get more positive on the shares than his current neutral rating.
While Tesla shares are still down 32% so far this year, the company has recently attracted some positive commentary from Wall Street, with Wedbush analyst Daniel Ives last week saying demand for the company’s Model 3 sedan was steady in Europe, and should help offset some weakness seen in China.
Demand for Tesla’s electric vehicles and the company’s ability to turn a profit have been the two biggest concerns for investors this year. An indication that the company is making progress on these two fronts without attracting controversies could boost the sentiment on the stock.