Van de Graaff investing

3 December 2013 By Antony Currie Follow @AntonyMCurrie

The electric car maker’s shares revved up 15 pct after a positive Wall Street report. Fears over recent Model S fires had taken the high-flying stock down to an almost defensible 27 times 2016 profit. Now shareholders are again showing too much faith, too soon, in CEO Elon Musk.

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Tesla’s stock price increased almost 16 percent on Dec. 3 after Morgan Stanley released a research report arguing that the recent one-third drop in the shares presented a buying opportunity. Analyst Adam Jonas named electric car maker Tesla his top pick of the automotive sector companies that he follows.

When the New York market closed on Dec. 2, Tesla was trading at just over 27 times estimated 2016 earnings, according to Thomson Reuters data.

In recent months, three Tesla Model S vehicles have caught fire following accidents.

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