Competition? Daimler Selling? Tesla Fears Not These Things - Barron's (blog)

Thursday, October 23, 2014


Two pieces of news came after yesterday’s close that really should have been bad news for Tesla Motors (TSLA). Instead, its shares are ticking higher this morning.





EVERT ELZINGA



So what happened? After the close yesterday, Daimler announced that it had sold its stake in Tesla, as the company has transformed from a niche player into, you know, actual competition. Last night, meanwhile, Ford Motor (F) said it would slash the price on its Focus Electric by $6,000 in hopes that a $29,995 price dag would boost demand.


Investors have shrugged off the news so far this morning. Tesla’s shares have gained 0.5% to $236.53 at 9:56 a.m. Maybe it’s because Tesla’s trading nearly 20% off its all-time high? Or that the upstart automaker is scheduled to report earnings if two weeks?


Or maybe, just maybe, the news just doesn’t matter that much after all.


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