The rest of the automobile companies have to face a transition towards cleaner engines with a situation of low liquidity and an increase in their debt, while Tesla does not have that “dilemma”
Electric vehicle maker Tesla rose nearly 12% on the stock market in the early hours of trading on Wall Street after financial services firm Credit Suisse said the company finds itself with a competitive advantage over other firms in the automotive sector when facing the coronavirus crisis.
Thus, the titles of the American brand opened the session with a value of 698.97 dollars, after closing the previous session at 650.69 dollars. However, after more than two hours since the opening of Wall Street, Tesla’s shares stand at $ 727.12, representing an increase of 11.75%.
In this way, Tesla could accumulate seven consecutive sessions in green, its biggest bullish streak since mid-October, which in turn could lead the company to increase its value on the Stock Exchange by 50% in just seven days, according to Bloomberg.
All this after Credit Suisse analyst Dan Levy pointed out that the Covid-19 pandemic has given the firm led by Elon Musk an advantage over other vehicle manufacturers and raised its rating.
In this sense, Levy has indicated that the rest of the automobile companies have to face a transition towards less polluting engines with a situation of low liquidity and an increase in their debt, while Tesla does not have that “dilemma”, since only produces electric cars.
Still, from Credit Suisse they have highlighted that it is a “virtual impossibility” that Tesla can achieve its forecast of delivering at least 500,000 units this year, so it estimates that it will enrol 400,000 units.