Tesla (TSLA.US) stock snapped its recent losing streak on Wednesday as some analysts still consider the EV giant as a good investment idea for next year.
Yesterday Baird Equity Research's Ben Kallo lowered Tesla's price target to $252, from $316 and believes that investing in its stock is "Best Idea" for 2023. In his opinion investors should not be overly concerned abut dwindling demand early in 2023 as the company "has many demand levers to pull including an increase in vehicle leasing and additional supercharging incentives."
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Create account Try a demo Download mobile app Download mobile appKallo believes that Musk’s company is well positioned in the auto market as EV's continue to capture more and more of the total market. Baird's remarks came in line with Wedbush analyst Daniel Ives on Tuesday who is also optimistic about Tesla stock.
Today Morgan Stanley joined the bullish choir. Bank analysts reiterated their Overweight rating and cut the price target to $250 from the prior $330 per share saying that the recent sell-off created an interesting buying opportunity. New price target also reflects reduced Q4 delivery expectations. Morgan Stanley estimates that the company will deliver around 399k vehicles, significantly below market estimates of 429k.
“We believe Tesla may be in position to extend its lead versus the EV competition in FY23 (both legacy and start-up) even before consideration of IRA (Inflation Reduction Act) benefits where Tesla also stands out as the biggest potential winner,” the analysts said in a client note.
In their opinion next year will bring a “reset” for the EV market as supply is expected to exceed demand.
“Within this environment, we believe players that are self-funded (non-reliant on external capital funding) with demonstrated scale and cost leadership throughout the value chain (from manufacturing to up-stream material supply) can be relative winners,” they added.
Tesla (TSLA.US) stock rallied almost 5.0% before the opening bell as buyers managed to defend major support at $107.50 which coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Nevertheless only a break above the earlier broken lower limit of the wedge formation, would indicate some bullish potential and chance for a bigger upward correction. In this scenario, the nearest resistance to watch can be found around $174.50. On the other hand, should break below the aforementioned support occur, price may deepen declines towards psychological support at $100.00 or even February 2020 highs at $67.00.Source: xStation5
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