After shares of Tesla (NASDAQ:TSLA) declined a bit in the past weeks due to a mixed fourth quarter earnings report, the American automobile maker is now set to go higher in the coming weeks after a bright outlook on the upcoming launch of the Model 3’s pricing and specifications along with CEO Elon Musk’s other ventures like the SpaceX program.
Aside from being the head of SpaceX and Tesla, Musk is also the chairman of SolarCity which was acquired by Tesla last year and is one of the founders of online payment company PayPal Holdings Inc (NASDAQ:PYPL).
After a stellar 2016 performance and a strong start this 2017 with the company launching its first Gigafactory and launching in Abu Dhabi, the company’s shares are still set to move in a safe direction after it jumped by more than 20% since the first week of January.
Tesla which has been heavily investing in the past months still rallied as CEO Elon Musk became one of US President Trump’s advisers. Tesla’s production also takes places in the United States alone which may deem the company safe from Trump’s threat to impose higher taxes on American companies who operates outside the country.
The Model S and X whose demand has also increased is still pushing through with its production and has been made available to more countries. Although it started positive at the beginning of the year, Tesla’s shares skidded on the release of its mixed earnings report, the announcement of the company’s CFO departure, losses of around 69 cents per share, and missed numbers on the company’s expected deliveries for 2016.
Tesla shares are currently standing at a 54% rally in the past two months or around a $134 upside from its recent closing price before it declined by around 10% in the past week as the company reported more losses than profit while some were unable to explain why the stock have risen to all-time highs prior to the earnings report.
Currently, the markets are awaiting the release of the Model 3 which has been received positive initially is set to be launched this year and extend its production till 2018. Musk currently has an outlook of $500,000 deliveries.
According to reports, the Model 3 might be launched sooner than original schedule and is set to bring the company’s sales at par with other companies such as General Motors (NYSE:GM), Ford Motor Company (NYSE:F), and Ferrari (NYSE:RACE).
Tesla’s market value is currently at around $44 billion where they would only need 10% to catch up with Ford’s current market valuation.