Why Tesla Motors, Acceleron Pharma, and Ballard Power Systems Jumped Today

The Dow finished just below its all-time highs, but the market's overall gains were small compared to these three stocks. Find out more about what made them soar.

Apr 2, 2014 at 8:00PM

Investors always keep an eye on employment-related numbers during the first week of the month, and today's news from the private sector pointed to healthy job creation that raised hopes of a spring thaw for the U.S. economy. The S&P 500 climbed to another record even as the Dow fell just short with a 40-point gain, but gains for Tesla Motors (NASDAQ:TSLA), Acceleron Pharma (NASDAQ:XLRN), and Ballard Power Systems (NASDAQ:BLDP) were much more substantial than the broader market's rise Wednesday.


Tesla rose 6% on news that it has appealed amendments to regulations from the New Jersey Motor Vehicle Commission that would prevent it from selling vehicles directly to customers within the state rather than going through established dealers with franchise agreements. With at least one measure proposed by a state lawmaker that would allow Tesla to use its direct-sales model in New Jersey, it's clear that the stakes are high for both the New Jersey state government and for Tesla. Although the state doesn't want to alienate its dealership constituency, the prospect of slamming the door on the popular high-growth electric-car company doesn't make for smart politics either. Today's stock gain suggests that investors think the issue will get a favorable resolution in the long run.

Acceleron Pharma climbed 13% after an SEC filing revealed that biotech giant Celgene (NASDAQ:CELG) has agreed to spend $47 million to buy 1.1 million shares of Acceleron stock from five pre-IPO investors in the company, including Britain's Alkermes (NASDAQ:ALKS). Celgene already owns a substantial stake in Acceleron, but after the purchase, its position is expected to rise to nearly 15%. Much of Acceleron's future depends on its partnership with Celgene, which includes splitting development costs of candidate drugs sotatercept and ACE-536. With studies still ongoing, it's too early to tell whether Acceleron will prove to be a good investment for Celgene and other shareholders.

Ballard Power Systems gained 8% as the fuel-cell maker said that buses using Ballard's fuel-cell modules were delivered to Aberdeen, Scotland as part of the city's hydrogen bus project. The buses were manufactured by Van Hool, a leading bus-maker in Europe, and Ballard expects the buses to go into use next month. Ballard's presence in Europe is still relatively small, with about 40 buses expected to have Ballard fuel cells in 2014. But investors hope that economies of scale will make Ballard's systems more competitive and drive future demand.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Celgene and Tesla Motors and owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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