Tesla Up Another 4% (TSLA)

Tesla Motors, Inc. TSLA shares are soaring, as oil comes close to the psychologically important $110 per barrel number. The thought process is that Tesla will benefit as consumers look to alternative fuel vehicles as gasoline prices cross and stay over $4 per gallon. Last week, we saw a Morgan Stanley report on Tesla have a $70 price target, and shorts were squeezed to the tune of almost 20%. In the research note, Morgan Stanley wrote, "xEV market entering higher volume and it's happening right now: We are convinced electric cars will comprise a significant minority of global light vehicle sales medium-term and the majority longer term. Our global xEV model suggests penetration of 5.5% globally by 2020 and >15% by 2025. Even on our forecasts, the Internal Combustion Engine (ICE) remains by far the dominant form of propulsion for a very long time." At last check, shares of Tesla were up $1.13 to $27.62, a gain of 4.25%.