Tesla Motors Inc (NASDAQ:TSLA) is now trading at over $250 and Colin Rusch, ThinkEquity managing director, was right to be bullish about the company two years ago.
The stock was up 13% year to date when this interview with Colin Rusch was made, in April 2012. However, at the time, Rusch believed there is even more upside to the company’s stock which was then trading at $32. He believed then that the stock will hit $39.
Tesla Motors Inc (NASDAQ:TSLA)’s stock is now at over $250. The bullish view on the company came even after a pullback on the stock at the time, Melissa Lee said in the interview that aired on CNBC. However, even bullish analysts like Rusch did not see the stock being at the price where it is now. Nonetheless, Rusch was correct to be really bullish about the company.
At the time, Abu Dhabi National Energy Company PJSC (TAQA) just sold a 7% stake in Tesla Motors Inc (NASDAQ:TSLA). Asked whether this should be a cause for concern for investors then, the ThinkEquity managing director thought that the development should not alarm investors. In fact, he thought smaller investors should be happy about the recent selloff.
“I don’t think [the selloff should alarm investors]. It was an […] investor that went through a portfolio review [and]decided to exit the position. They exited it well in an organized transaction and did some very strong hands. I think it has just created a buying opportunity for folks with this recent selloff,” he said.
Meanwhile, Colin Rusch also noted then that he thinks Tesla Motors Inc (NASDAQ:TSLA) is a luxury sale for folks at the moment. He said that the car the company sells is a great car to drive and is likely to be considered by people who are looking for a fourth or a fifth vehicle for their home.
Today, the company is aiming to launch its Model 3, a vehicle the car maker hopes will capture more market share because of its lower price (around $35,000).
Rusch also said that Tesla Motors Inc (NASDAQ:TSLA) is doing a great job with designing its battery pack. He also mentioned the ingenious way the company is working with Panasonic in order to produce these battery packs that are key to their vehicles. Just recently, Tesla and Panasonic have signed an agreement to build what the car maker dubs as its “Gigafactory,” a large scale battery manufacturing facility which will help it produce more cars at a lower price.
Rusch, at the time, had a Buy rating on the company’s stock with a price target of $39, way below where the stock price is at now.