Tesla Shares Pop and Drop on Barron's Article


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Following release of a positive article from Barron's, shares of Tesla Motors (NASDAQ: TSLA) moved up over 3 points, going from 227.81 to the highs of the day at 230.90.In the article, Northland Capital analysts Colin Rusch and Noah Kaye make the case that lower oil prices won't hurt Tesla's sales, stating:"Based on our estimates, annual savings versus a comparable vehicle at $60/bbl oil comes to $1,100/year while at $100/bbl oil annual savings come to $2,160…Coupled with maintenance savings post warranty due to simplicity of the drive train, these savings can represent incentives for buyers, but we don't believe they will be primary drivers of [Tesla's] sales in the foreseeable future."They also go on to make the point that Tesla's battery business may be a bigger profit driver than the cars, saying "we are evolving our understanding of the company to something more basic than a transportation company, but rather as a value-added energy storage company."Shares of TSLA have since given back the gains, trading virtually unchanged at 229.22.

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