Toyota Motor Corp (ADR) (TM) Sells Remaining Stake in Tesla Inc (TSLA)

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Cue Earth, Wind & Fire’s After the Love is Gone. Toyota Motor Corp (ADR) (NYSE:TM) has sold its remaining shares of Tesla Inc (NASDAQ:TSLA). TSLA stock is off by about 1.4% this morning.

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The holding dates back to 2010 when the Japanese car maker bought about 3% of Tesla for $50 million. The electric car maker also took possession of Toyota’s Freemont, Calif. assembly plant in the deal.

The split leaves Toyota unencumbered as it readies its own 100%-electric car, along with self-driving vehicles. The company pioneered the Prius, a gasoline-electric hybrid in 1997. Meanwhile, in recent days, TM revealed its investment in a flying car, putting more than $350,000 into a small Japanese startup called Cartivator Resource Management that is developing a vehicle that could be more Jetson’s than Japanese.

Loup Ventures co-founder Gene Munster recently gave Tesla a bullish accolade, calling the electric carmaker the next Amazon.com, Inc.  “Most people think of (Tesla) as an electric car company, but their mission statement is to accelerate the globe’s transformation to renewable energy. When you start thinking about that you can see them grabbing market cap from energy companies which are some of the largest market-cap companies.”

As InvestorPlace feature writer James Brumley wrote last week, “the bulk of Tesla stock’s bulls are actually technology analysts, who are no stranger to seeing overvalued (and often unprofitable) stocks climb based on nothing more than an idea. Most of those pros bearish on TSLA stock are automobile industry analysts.”

Despite this morning’s pullback, TSLA stock gained 59% this year through the end of last week, while TM stock lost 6.7% of its value in the same period.

 


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/toyota-motor-corp-adr-tm-sells-remaining-stake-in-tesla-inc-tsla/.

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