According to Freddie Lait, Chief Investment Officer at Latitude Investment Management, Tesla Incs (TSLA) market capitalization of $52.5 billion warrants a buyout scenario, while Apple Inc, having sizable cash on hand, is the most likely candidate to place a takeover bid.
Tesla shares closed lower for a second consecutive trading session on NASDAQ on Wednesday. It has also been the steepest daily loss since February 14th. The stock went down 1.01% ($3.08) to $302.56, after touching an intraday low at $298.96, or a price level not seen since February 8th ($298.50).
Shares of Tesla Inc have retreated 9.09% so far in 2019 compared with an 11.57% gain for the benchmark index, Nasdaq 100 (NDX).
In 2018, Tesla’s stock went up 6.89%, thus, it outperformed the Nasdaq 100, which registered a 1.04% loss.
“Its quite possibly going to get bought out for that valuation because it represents what that is,” Latitude Investment Managements Lait said for CNBCs “Squawk Box Europe”.
“Its already got its own operating system, its got its own technology, its got a great brand,” the CIO added.
There have been other opinions on Wall Street that the US electric car maker could be an acquisition target for Apple, since it might fit well with the tech giants automotive plans. Having almost $245 billion in cash, Apple has been developing its own electric vehicle project, known as “Titan”.
According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $337.50, with a high estimate of $530.00 and a low estimate of $200.00. The median estimate represents an 11.55% upside compared to the closing price of $302.56 on February 20th.
The same media also reported that 10 out of 31 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 8 analysts had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Tesla Inc (TSLA) are presented as follows:
Central Pivot Point – $309.16
R1 – $317.32
R2 – $326.76
R3 – $334.92
R4 – $343.08
S1 – $299.72
S2 – $291.56
S3 – $282.12
S4 – $272.68
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
