Although being an import means Tesla’s Model S doesn’t qualify for the recently updated Chinese EV state incentives, the US company’s shares went up as investors anticipate a favorable climate.
Ben Kallo of Robert W. Baird & Co. and Craig Irwin at Wedbush Securities Inc. both said that although the Model S doesn’t qualify for the subsidy, China’s planned extension of incentives creates good conditions ahead of the planned sales start due next month.
“We understand we don’t qualify for direct subsidies,” Diarmuid O’Connell, Tesla’s vice president of business development, said in a phone interview yesterday. “We’re hoping the government will consider the role Tesla can have in catalyzing electric vehicle adoption in China and extend those incentives to Model S as well.”
Yesterday, at the New York Stock Exchange, Tesla’s stock rose 5.4 % to a new record of $196.56 – as Tesla (who last year alone quadrupled in value) reclaimed its ascension path last month after it announced the revenue and Models S sales for the fourth quarter of 2013 went up around 20%.
Kallo, who rated Tesla’s shares to “outperform”, pointed out that Elon Musk, Tesla’s billionaire chief executive officer, has a good strategy for China and that together with JB Straubel, its chief technical officer they did well to let European customers in on the company’s plans for the Model S and Model X crossover.