Tesla Keeps its Troubled Safety Rating
Tesla Motors (NASDAQ:TSLA) investors have had an exceptionally good year as far as returns go. Shares of the company are higher by an astounding 325 percent year to date. However, sentiment for the company peaked alongside shares a couple moths ago, since then shares have traded with great volatility in a range of $120 to $150. Saftey concerns relating to fire, have kept some traders and investors out of the name for fear of possible recalls.
The perfectly rated automobile has come under great scutiney as the number of reported fires increases. Some on the street wondered if the automaker’s federal safety rating would be tarnished as a result of the fires. However, on Tuesday morning, shares of the company traded higher when it was announced that Model S sedan has retained its five-star safety rating from the same government agency probing recent fires. The National Highway Traffic Safety Administration is looking into fires after Model S sedans hit metal debris. Tesla’s sought-after car retains NHTSA’s highest rating for crashworthiness, according to Bloomberg.
With the possibilities of a downgraded safety rating no longer weighing on the minds of investors, shares of the company were sent racing higher. At the time of this writing, shares of the company were higher by nearly 7 percent to $153.25 per share. On the shortened trading day, it will be interesting to see if the company can maintain these gains on a low volume day.
2014 most certainly be a volatile year for the company. High powered interests on both sides of the ball will fight about valuations as retail investors simply hang on for the ride. Finances.com wishes all of our readers a merry Christmas! Maybe Santa can bring us even more double digit gains next year.
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