Tesla is showing ‘meaningful upward momentum,’ says Guggenheim

Tesla is showing ‘meaningful upward momentum,’ says Guggenheim

Guggenheim analyst Robert Cihra reiterated his buy rating on shares of Tesla Inc. TSLA, -13.90% Monday, after Chief Executive Elon Musk settled with the Securities and Exchange Commission regarding charges that he misled investors when he tweeted about taking Tesla private. “We continue to forecast Tesla’s economics now starting to flip from cash-burn to cash generation off the big vertically-integrated fixed-cost structure it has been building, as its execution hurdles progressed from battery module production 2 to 3 quarters ago, then to automated general assembly, to now simply the logistics of shipping/ hauling Model 3 deliveries fast enough,” Cihra wrote. The company now has “meaningful upward momentum,” he said. Cihra is also upbeat about the settlement. “We believe that Tesla is not only synonymous with Elon Musk but that he is critical to the company’s engineering and visionary success, and so see it as a positive that he settled and kept his job as CEO,” he wrote. Tesla shares are up 15% in premarket trading Monday. The stock had fallen 22% over the past 12 months as of Friday’s close. The S&P 500 SPX, +0.00% was up 16% over that time.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Related posts