TSLA Stock Rises Over 8% Now but Some Analysts Downshift Tesla

 
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Tesla stock’s rebound makes us believe that Tesla shares are now a good investment. At the moment of writing, TSLA stock is trading at over $545.

After a long downfall, Tesla Inc (NASDAQ: TSLA) stock rises again, which allows investors to believe in the car manufacturer’s long-term prospects. Today, its price has been $521.50 or 3.27% up at the opening. At the moment of writing, it is even higher, $549.14. Tesla stock has added $44

At the beginning of 2020, Tesla witnessed heavy trading volumes on Wall Street and promised well. But with the coronavirus outbreak, all the hopes foundered. The company’s stock, as well as shares of other prominent market players regardless of the industry they operate in, started plunging. The plunge was steady and long when finally Tesla (TSLA) stock reached its anti record price level below $400 last week. The company’s position was exacerbated by the shutdown order of Bay Area’s Alameda County sheriffs who called Tesla’s production a ‘nonessential business’.

But Tesla stock managed to bounce back, with the rebound being pretty rapid. In just two days, Tesla (TSLA) stock got back to above $470 levels. Yesterday, it surged by 15% to close at

The rebound makes us believe that Tesla stock is now a good investment. Besides, even in coronavirus time (which will one day come to an end), electric vehicles are still gaining ground over internal combustion engines. Therefore, Tesla will definitely remain a leader in the industry.

Tesla (TSLA) Stock Performance Underestimated by Analysts

In the long-term perspective, Tesla is definitely prosperous. However, some analysts do not believe in its potential in the short-run. For example, Argus Research’s analyst Bill Selesky explains his incredulity to Tesla by lower deliveries and its proxy for sales. He stated:

“Prior to the outbreak, we had expected fairly robust deliveries from Tesla in 2020, as consumers continued to flock to the Model S, Model X, and more recently, the Model 3. We still think that Tesla has strong long-term prospects. However, in the near term, we believe that consumers will focus on basic concerns (food, safety, employment, etc.) and expect consumer confidence and spending to take a major hit as consumers defer large discretionary purchases.”

The analyst has also lowered his forecast of Tesla’s delivery this year by 19% to 409,000 vehicles.

Another expert from Citi, Itay Michaeli, has predicted a decline in Tesla’s cash balance by the end of the second quarter.

Michaeli said:

“This suggests adequate cushion to absorb a difficult Q2, but relatively limited cushion to absorb similar conditions for another two quarters.”

Itay Michaeli has also lowered his price target on Tesla to $246 from $312.

Whether the analysts are right, we’ll see when the coronavirus pandemic will be on the wane.

Business, Markets, News, Stocks, Technology

Author: Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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