Can Tesla Motors Stock Move Higher?

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With shares of Tesla Motors (NASDAQ:TSLA) trading around $138, is TSLA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles?

After the stock ran up over 300 percent this year, Tesla Motors hit a snag over the last month when a string of three battery fires in the company’s flagship Model S line. The stock fell 20.4 percent in November as investors worried that the car fires were indicative of a larger problem and might warrant a recall. But Tesla received great news this week as German regulators concluded their investigation, noting “no manufacturer-related defects could be found.” Founder and CEO Elon Musk tweeted the news late Monday, and the stock has responded with vigor on Tuesday. At 3:00 p.m. EST it was up 15.7 percent, one of the biggest movers of the day.

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