Tesla Motors might be one of the most polarizing stocks on Wall Street, but its first profitable quarter since 2013 has certainly convinced at least one one Tesla bear to upgrade the stock.
Analyst Efraim Levy of CFRA (which bought S&P Global Market Intelligence back in September) upgraded the stock to “Hold” Thursday, writing:
Levy first downgraded shares of Tesla in March to “Sell,” and maintained that rating even when Tesla announced a stellar preliminary figure for third quarter deliveries in early October. At the time, Levy raised concerns about Tesla’s ability to produce its mass market Model 3 car on schedule. The proposed SolarCity acquisition also worried Levy, who said it could hamper Tesla’s ability to reach profitability.
But Tesla’s third quarter beat of $2.3 billion in revenue on 71 cents earnings per share against the analyst consensus of $1.9 billion in revenue of a loss of 54 cents per shares changed Levy’s mind.
Levy has never placed a “Buy” rating on Tesla, which is helmed by Elon Musk.
Shares of Tesla closed at $204.01 on Thursday, up nearly 1%.