Story highlights Tesla Model S Limited Edition Plaid with custom finish coming to China in March
The option will cost $9,000 and is currently only available to Model S drivers in the US
The stock of Elon Musk’s Tesla has been soaring over the past year, reaching highs of $400, and shares surged following the controversial flotation of the electric carmaker on the Nasdaq stock exchange back in June.
But even after these seemingly impressive gains, shares declined Monday after Tesla issued a voluntary recall of some of its most expensive electric vehicles. The company has more than 4,400 Model S sedans and Model X SUVs that could become damaged or non-operational due to a “weak” part in the vehicle’s battery system, according to CNBC.
As a result, several thousand Tesla vehicles have been linked to a recall in the US.
But at least one Wall Street analyst thinks the company could be on the verge of a triumphant comeback.
In a note to clients last week, Canaccord Genuity analyst Nick Peter says the company’s fourth-quarter financial results, along with its promise of job cuts and reduced spending, could drive a rebound in Tesla stock, according to Bloomberg.
“We believe these initiatives, which we view as revenue-neutral by mid-2019, could provide a potential spark for price appreciation in the medium term as profitability grows,” said Peter.
“While we expect vehicle delivery numbers to decrease in the near term as key markets carry lower subsidies, based on order trends, we believe profitability will improve for both models … due to production efficiencies and delays.”
Peter’s note was based on his “risk-off” outlook for the stock, which he calls “the greatest upside opportunity in consumer-electronics,” citing for example low valuation, healthy margins and high growth potential.
The stock has gained around 14% so far this year, trading at $312.71 at press time,
The company’s European arm will also be making the Limited Edition Plaid option available to Chinese Model S drivers starting this March, CNBC reports.
You can get your hands on the Limited Edition Plaid model, which comes with a bright, bright green paint job and a custom plaid option, starting at $9,000. But at this time, the unique color option is only available for Model S drivers in the US and Europe.