Thank you!
You have successfully joined our subscriber list.
After closing yesterday at $1,389.86, with a +1.33% change, Tesla (TSLA) stock is in the green in the pre-market.Morgan Stanley analyst Adam Jonas has set a bull case scenario for the shares that could be traded at $2,070.
Tesla Inc (NASDAQ: TSLA) stock is scaling higher by the day, and likely to reach a $2,000 level sooner than anticipated, despite the negative energy from different analysts.As of July 7, 2020, Tesla stock hit a new ATH after adding $18.28 to close the day at $1,389.86 and is now trading very close to $1,400 in the pre-market (+0.51%).
“Resilient demand for Tesla Inc.vehicles is making the Silicon Valley car maker appear as a less risky company that is on more solid financial footing than other carmakers,” said Adam Jonas, an analyst at Morgan Stanley .
According to Jonas, he sees two possibilities for the Tesla shares in the near future.
On one side, he upped his price target on the EV shares by 1.33% to $740, which is almost half the current market price.Whereas in the other case scenario, he set a bull rally to reach $2,070.
Tesla shares are heavily marred by speculative trading, which makes their volatility high in comparison to other traditional stock markets for auto carmakers.Notably, according to a survey conducted by FactSet on 32 Tesla analysts, the concluded average price per share is $778.
However, Tesla shares are less obedient in most of these analyses and tend to do impressively the opposite.With the EV demand rising in China and also the Asia market, which is dubbed as the region with the highest population concentration, the rally might as well be in the initial phase.
Tesla Stock Bigger Picture and Its Power to Set Another ATH
Recently, Tesla CEO Elon Musk unveiled a new product of cloth line ‘ Short Shorts ’, which in the bigger picture is a pun intended on analysts and investors who were negative on the company a few years ago.The company’s engineers have been working on delivering better quality batteries that are lighter, durable and also capable of delivering higher mileage.
Moreover, the company began taking orders in China for its Cybertruck units, which will largely diversify its products and in turn help in cushioning against any form of a market crash.
With the company staying ahead of its production expectations, its investors remain very positive on the shares to reach even higher than the set price by most analysts.
“Tesla has demonstrated one very powerful differentiating quality vs many of its auto peers: demand is holding up better,” said Jonas in his note.
Tesla largely seems to be defying gravity and more so the analyst expectations, the sky might not be the limit for the company.Author Steve Muchoki
A financial analyst who sees positive income in both directions of the market (bulls & bears).
Bitcoin is my crypto safe haven, free from government conspiracies.Mythology is my mystery! “You cannot enslave a mind that knows itself.That values itself.
That understands itself.” Share this article.