Tesla stock muted despite analysts optimism

6:09 PM December 28, 2021

Tesla (TSLA.US) stock fell slightly during today's session despite the fact that both Wedbush and Argus lifted their price targets. Wedbush's Daniel Ives believes the electric vehicles sector is set for a significant step forward and Tesla's navigation of the semiconductor supply chain issues puts it in a position of strength. He expects component shortages to ease next year, allowing Tesla to better meet growing demand in China, while new factories in Austin, Texas and Berlin should alleviate global production bottlenecks. “The linchpin to the overall bull thesis on Tesla remains China, which we estimate will represent 40% of deliveries for the EV maker in 2022,” Ives said, reiterating his outperform rating and $1,400 price target. Meanwhile Argus Research boosted its price target to $1,313 from $1,010 and reaffirmed a buy rating. Argus considers Tesla  as the industry’s “undisputed leader,” even in the face of “growing competition.”

In the coming days, investors' attention will focus on Q4 delivery figures which could be released as early as Jan. 1 and as late as Jan. 5, with Monday Jan. 3 a likely date. FactSet expects 276,900 delivered vehicles. In Q3, Tesla delivered 241,300 vehicles in the quarter, beating estimates for 232,000.

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Tesla (TSLA.US) stock bounced off the major support at $900.00 last week and price quickly managed to break above psychological $1000.00 level. However on Monday buyers failed to break above the downward trendline and price pulled back to local support at $1080.75 which is strengthened with 23.6% Fibonacci retracement of the upward wave launched at the end of May 2021.Source: xStation5

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