Tesla surges after Morgan Stanley becomes the second Wall Street bank to drop coverage of the stock TSLA

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Morgan Stanley dropped coverage of Tesla on Tuesday, becoming the second bank to restrict the stock.

Shares surged as much as 5 following the news.

Also on Tuesday, new documents show the grueling ways Tesla hit its production goals in June.

Follow Tesla's stock price in real-time here.

Shares of Tesla spiked as much as 5 Tuesday morning after Morgan Stanley became the second Wall Street bank to restrict its coverage of the stock and remove its price target. It could be a sign that Elon Musk is making progress in his bid to take the electric-car maker private.

Goldman Sachs dropped coverage last week, as is typical when a bank's investment banking division is hired by a company its equity research department covers. The two departments are legally divided by a so-called Chinese wall that prevents the two divisions from conflicts-of-interest.See the rest of the story at Business InsiderNOW WATCH: How Columbia House sold 12 CDS for 1See Also:Your opinion matters Join BI Insiders programInvestors have turned complacent and are in danger of being sideswiped by a 'likely correction' that's approaching, Morgan Stanley saysElon Musk: Anyone who can do a better job as Tesla's CEO 'can have the reins right now'SEE ALSO: Tesla's electronics are miles ahead of the competition but Wall Street analysts who tore down a whole car worry they could be 'too centralized'

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