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Shares soar for ‘America’s fourth car maker’ Tesla

It has been an exciting week for electric sports car maker Tesla. First, it marks a milestone 10 million miles driven by owners of its first electric model, the Roadster (see story). Then it announces it is to bring a court case against the BBC show, Top Gear for libel and malicious falsehood over a road test of its Roadster model featured on the programme which implied the car would fall well short of its official stated battery range (see story).

Now the Wall Street Journal is reporting that the Silicon Valley start-up enjoyed a surge in its share price yesterday after it was revealed that the US President is instructing federal agencies to buy only alternatively-fuelled vehicles by 2015.

The move marks a massive endorsement for the manufacturers of alternatively-fuelled vehicles and will help to drive demand for hybrids, electrics and biofuel cars across the US.

On the back of the President Barack Obama’s announcement (see story), Tesla shares jumped as much as 21 per cent and closed up 17 per cent at $27.75. The company is the largest U.S. maker of highway-ready electric cars, with nine dealers in the U.S. and eight others in Europe and Japan.

Morgan Stanley further fuelled the rise in the company’s stock price as it reported that the market for electric vehicles is underestimated, adding, in a new report that the firm has the potential to become "America's fourth automaker."

Faye Sunderland

About Faye Sunderland

Faye has been writing about cars and environmental issues since 2007. A suspected eco-warrior working on the corporate inside, Faye mainly likes the weird, quirky vehicles that show a distinct environmental advantage. Her ideal car has enough room to fit a bale of hay in the boot. When not working, she likes nothing better than to head out on her bicycle and explore the countryside.


April 01, 2011
Filed under: Tesla Motors

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