Tesla Motors (TSLA) is getting a lift today from a piece of good news that could alleviate fears that its cars are unsafe.
Bloomberg has the details on Tesla’s safety rating:
Tesla Motors Inc., the electric-car maker being reviewed by U.S. regulators over battery-related fires, said the safety rating for its Model S sedan is reaffirmed for the 2014 model year.
The flagship vehicle from the Palo Alto, California-based company, with a $70,000 base price, retains a 5-star rating for crashworthiness, the highest designation given by the National Highway Traffic Safety Administration. The agency opened a review of the car last month after fires in Tennessee and Washington state occurred when drivers struck metal debris.
Shares of Tesla have gained 6.2% to $152.23 on the news, putting it up 20% so far in December. If it holds onto these gains, it would be Tesla’s biggest rise since August, when it gained 26%. It also comes as more traditional automakers struggle, as Ford Motor (F) has dropped 11% in December, Toyota Motor (TM) has fallen 5.3% and Honda Motor (HMC) has dipped 3.1%. General Motors (GM) has gained 5.7% this month.
Still, Tesla is a ways off its 52-week high–21% to be exact–as this chart shows.
So what’s next for Tesla Motors? Back to its highs or another drop?
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