As Tesla Motors Inc. is now on the verge of starting the delivery of its first Model S models this week, the electric car maker’s shares increased by up to 8.1%. in Nasdaq trading, its shares climbed by 6.45%, or $1.93, to $31.84 at 4 p.m. ET after hitting $32.33, its largest intraday increase since May 22. The Model S can be driven up to 300 miles (483 kilometers) on a single charge.
It is the first model designed and built in-house by Tesla. It has a starting price of $57,400, which is just half of the cost of its Roadster, a battery-electric sports car that came out in 2008 and which was built under an agreement with Group Lotus Plc. The Roadster stopped selling in early 2012.
In Barclays Plc’s new report, it said that there’s plenty of excitement associated with Tesla’s execution to date but then it can’t be denied that there are high stakes. It stated that the shares will continue to be viewed favorably as we approach a multiyear product cycle.
Tesla's Fremont, Calif., plant is producing the Model S. This facility had been the joint venture of Toyota Motor Corp. and General Motors Co.’s predecessor. Tesla’s investors include Toyota, Daimler AG and Panasonic Corp.