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Tesla stock (TSLA) gets vote of support from German banking giant Commerzbank

(Credit: Friedrich Beckel/Twitter)

Tesla stock (NASDAQ:TSLA) has received a notable vote of confidence from a massive financial conglomerate, with German banking giant Commerzbank AG disclosing that it has doubled down on its stake in the electric car maker in Q2 2019. 

During the second quarter, which saw Tesla deliver a record number of vehicles but fall short of Wall Street’s earnings estimates, the German firm scooped up 350,258 Tesla shares, nearly doubling its holdings to a total of 772,972 shares. The financial firm’s stock purchase appears to be part of a series of investments that would stand to benefit as automation and digitization — technologies that Tesla is actively involved in — spread through the market, according to a Barron’s report. 

Interestingly, Commerzbank scooped up its new Tesla shares in the second quarter, a time when the electric car maker’s stock hit over two-year lows. Following a first quarter that fell significantly below expectations, Tesla shares were bombarded by one negative forecast after another. Morgan Stanley analyst Adam Jonas even released a “worst-case” price target of $10 for TSLA stock at one point. Yet, despite all this, as well as the insistence of Tesla critics that demand for the company’s vehicles is dead, Commerzbank opted to nearly double its investment in the electric car maker.

In a way, the German banking giant likely has a unique perspective on the premium auto industry, being in a country that hosts some of the world’s most iconic premium brands such as BMW, Mercedes-Benz, and Audi. As such, its notable additional investments in Tesla, especially at a time when the company’s shares were beleaguered for the most part, bodes well for the Silicon Valley-based carmaker

Tesla seems to be attracting some votes of confidence from notable investors as of late. Apart from Commerzbank, former Tesla bear and longtime Shark Tank Judge Kevin O’Leary recently revealed on CNBC that he had purchased TSLA stock for himself, on account of Tesla’s remarkable ability to attract the best talent in the field. Tesla stock also rallied +3.39% on Monday, ending the day at $235.77 per share despite a pessimistic note from Morgan Stanley, which lowered its delivery forecasts for the company to 345,000 vehicles in 2019, at least 15,000 less than the 360,000 electric cars the company is expecting to deliver for the year. 

As of writing, Tesla stock is trading +0.39% at $236.68 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla stock (TSLA) gets vote of support from German banking giant Commerzbank
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