Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Following Tesla Motors'
So what: Shares had cratered on news that two high-level executives had departed, stoking fears concerning the Model S development. In a conference call this morning, CEO Elon Musk addressed analyst questions, elaborated on conditions surrounding the departures, and reaffirmed the company's projections. Musk said the departures will have no operational impact on the Model S's timeline, and while one exec left for personal reasons, the other was no longer a good fit for Tesla.
Now what: Musk projects 20,000 unit sales next year for the Model S, with at least a 25% gross margin. A number of analysts have followed up with bullish sentiments, further framing Friday's sell-off as a major overreaction. Dougherty & Co. has reiterated its buy rating and $40 price target, saying the long-term growth story remains intact. Wunderlich Securities and Goldman Sachs have both upgraded Tesla from hold to buy, with $30 and $35 respective price targets.
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Fool contributor Evan Niu owns shares of Tesla Motors, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.