Tesla shares close higher on Thursday, auto maker intends to open at least 50 new service centers next year

According to a report by Electrek on Thursday, citing a source with knowledge of the matter, Tesla Inc (TSLA) intends to open at least one new service center every week during next year.

Currently, the auto maker operates 466 service centers across the globe, the same media reported.

Tesla shares closed higher for the fourth time in the past ten trading sessions on NASDAQ on Thursday. It has also been the sharpest single-session gain since October 14th. The stock went up 1.18% ($4.81) to $410.83, after touching an intraday low at $406.52 and an intraday high at $418.00.

Shares of Tesla Inc have risen 391.01% so far in 2020 compared with a 29.97% gain for the benchmark index, Nasdaq 100 (NDX).

In 2019, Tesla Inc’s stock went up 25.70%, thus, it underperformed the Nasdaq 100, which registered a 37.96% gain.

Analysts at brokerage RBC wrote in a client note last week that Tesla Inc’s investment in service and quality had been insufficient to keep up with the company’s rising sales and it could lead to damages for the brand.

“Service could be particularly important as Tesla continues to try to expand outside its core market,” RBC analysts noted.

Analyst stock price forecast and recommendation

According to CNN Money, the 33 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $400.00, with a high estimate of $800.00 and a low estimate of $40.00. The median estimate represents a 2.64% downside compared to the closing price of $410.83 on October 29th.

The same media also reported that at least 14 out of 37 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – as “Sell”. On the other hand, 11 analysts had recommended buying the stock.