Analysts: Investment Window for Tesla Closed For Now

Setback for Tesla's launch in China, punctuated by the resent resignation of its China CEO, suggest to analysts Nathan and Najarian that the window for investing in the company 'is closed for now and might open again any time.'

Published: 23-Dec-2014

Tesla Motors Inc (NASDAQ:TSLA) is slowly getting to put a mark in the Chinese market, with its launch of Model S Sedan in April. Chinese government also helps Tesla Motors Inc (NASDAQ:TSLA) in spreading its wings across China with its support for electric vehicles to reduce the pollution in its cities. But this has taken a hit with the announcement that Tesla’s Chinese head will be parting ways with the company shortly. Traders Dan Nathan and Pete Najarian talked on CNBC about this announcement and its impact on the Tesla Motors Inc (NASDAQ:TSLA) stock.

CNBC’s Melissa Lee reported that Tesla Motors Inc (NASDAQ:TSLA)’s Chief of China, Veronica Wu will be resigning from her role in some days. She added that Wu was with Tesla for more than a year and this resignation announcement comes shortly after resignation of Tesla’s China Communications Chief Officer.

Nathan pointed out that China is very important region for Tesla Motors Inc (NASDAQ:TSLA)’s growth and they need to get it right. He pointed at the stock had hit an all-time high not very long ago, but has dropped by around 30% since then. But he feels that they need to maintain the stock price at about $200 level. He feels that Tesla Motors Inc (NASDAQ:TSLA) is doing a good job of doing that. He said that the news like this is bullish on Tesla Motors Inc (NASDAQ:TSLA).


Screen capture of Tesla Motor's Chinese language website home page.

If Tesla thinks dealing with intrenched US car dealerships is tough, it's now taking on the bureaucracy of the People's Republic of China.

Tesla Model S range calculator will lose 3 miles for every mile driven when the heating system is on, reports CR.

One year on and CR finds their 85kWh electric car loses a bit of driving range in winter and if left unplugged; they also feel the air conditioning system could be better.

Tesla Model S earned 5 star safety rating in 2013.

While Tesla has enjoyed a largely successful year despite a trio of battery fires, other EV carmakers have been compelled to cut prices to stimulate sales.


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