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Tesla shares: Time to Buy?

Tesla shares: Time to Buy?

By Ben Levisohn

The key to going fast is to “speed smart cause we don’t want to wreck,” Daniel Johnston sang in “Speeding Motorcycle.”

And that’s what makes the 18% selloff in Tesla shares during the past month of trading a great buying opportunity, says Global Equity Research’s Trip Chowdhry.

He explains why:

  • Investors with mid-to-long-term investing horizon, should build position in Tesla – Weakness is a buying opportunity:
  • Fundamentals of the company are strong, customer interest in Tesla’s product is extremely high…
  • When we were in the line for the test ride, at 8:00 PM [at Tesla’s Oct. 9 presentation], the delivery date for Model D’s was December’2014….but when we completed the test drive, about 45 min later, the delivery date for Model D’s was already moved to February’2015…
  • Reiterating overweight Rating on Tesla Motors shares and our 12 – 18 months price target of $385. Our 12 – 18 months price target is based on Revenue multiple of 9xFY2015 estimates of $6.2 Billion.