Deutsche Bank Tesla upgrade nudge
Germany has been relatively slow to embrace EVs. Although Audi showed a promising all-electric e-tron in 2009, its then CEO, Johan de Nysschen, swore there was no future in EVs. Porsche hadn’t even talked about their wild 918 plug-in hybrid (PHEV) and Mercedes was the only one who had invested in that technology, with Tesla Motors. BMW? Well, no one talked about an EV there either. Instead, Germany was capitalizing on decades of diesel investments and hoping to cash in reintroducing it to the the U.S. The market and global crisis decided otherwise by throwing a wrench in that plan. A Deutsche Bank Tesla upgrade in the market means Europe is starting to see Tesla as a viable player for its transportation market.
News of the Deutsche Bank Tesla upgrade not only sparked a slight upbeat in the European market, but also shows that Germany is starting to bring in electric cars and alternative energy into its definitive landscape. The country produces a lot of solar energy, which has also brought its fair share of problems integrating into the national grid. With Mercedes and BMW selling an electric car, and Audi a PHEV, Germany is taking the electric phenomena seriously. When the most financially powerful economy in Europe gives Tesla a nudge, the means good news for the company.
Reading the Deutsche Bank Tesla upgrade
Investors should be careful, however. Germans are pragmatic and advance cautiously. The Deutsche Bank Tesla upgrade means the market is recognizing the Tesla Motors potential and agrees with its goals and plans for the future. What this also means is that the country is optimistic that Tesla Motors will reach the higher production levels it is aiming for. The Deutsche Bank feels Tesla Motors will reach its targets with a scale up production. Shares at the Deutsche Bank had a price target of $310 and is only $3.50 per share away from an all-time high, according to Seeking Alpha. This is also helped by the fact that Tesla beat its second-quarter consensus estimates in the U.S.
Europe is an important part of the strategic expansion for Tesla. While all eyes on the budding Chinese market, everything must built from scratch there, save for demand. Germany is the leading financial powerhouse in Europe and a Deutsche Bank Tesla upgrade means Tesla can now go beyond Norway, and into the rest of Europe.