Dallas, Texas 09/30/2013 (Financialstrend) – Tesla Motors, Inc. (NASDAQ:TSLA) stock has been on an upwards trajectory over the past few months. It has managed to zoom up from a $29.8 per share valuation on October 2’2012 to a $190.9 per share valuation as of close of business on September 27. It translates to a 6 times increase in its value over the past 12 months. The stock is trading 0.64% above its prior 52 week highest valuations at current pricing. The stock has 118 million outstanding shares with an average daily trading volume of 10.3 million. It is difficult to pick another automobile manufacturing company which has show such dramatic increase in its market fortunes in such a short period of time.
In the recent past there have been a few red flags being raised by analysts on how much longer the electric auto maker can sustain these stock market rallies before the actual sales numbers pull it down. One such report that is doing the rounds is dated September 23 and was authored by analysts at Bank of America Merrill Lynch. The report starts out by highlighting that institutional ownership of the stock has come down to 59.5% in September. In comparison 84% of the stock was held by institutional investors in January. The report summarizes that investing firms have taken a cautionary approach to the build up in the stock price and have exited while the stock price is on top. In the same context the report explains that the void created by the exit of institutions is being filled by individual and retail investors who are being drawn in by the hot paced growth that the company stock has seen over the months. It goes on to peg the realistic value of the share to be around $45 per share.