- You’re here (TSLA) the stock is down 8% in the past five days and 18% since the start of the year.
- TSLA stock was recently updated and last week’s Cyber Rodeo event revealed several growth catalysts.
- Investors should take advantage of the current weakness and buy TSLA shares before the rally resumes.
You’re here (NASDAQ:TSLA) are down 8% in the past five days. After TSLA stock rallied in the last two weeks of March and the first week of April, the opportunity presents itself for investors. Is now the time to move on and buy Tesla stock? Or is this a sign of the worst to come?
Several factors are at the root of this current slump. From a business perspective, there was bad news from China. Reuters reported that The Chinese car market was hit hard by Covid-19 in March. When sales in the world’s largest auto market plummet 11.7%, that’s bad news for any automaker doing business there. Tesla has also been affected by the lockdowns in this country. According to Reuters, with multiple production shutdowns, the company was only able to assemble 55,462 units in March at its Gigafactory in Shanghai, compared to 68,117 vehicles in January. Production at this plant remains suspended.
Additionally, Tesla CEO Elon Musk has been making headlines, and not necessarily in a good way. He is facing fines from the Securities and Exchange Commission on the large stake he bought in his favorite social media company.
The cyber rodeo was good news for TSLA investors
China will recover from the current wave of Covid-19, and Elon Musk’s latest distraction will fade. The big news potential Tesla investors should watch out for was revealed during last week’s Cyber Rodeo at the company’s Austin GigaFactory.
Musk spoke about the company releasing a beta version of Tesla’s comprehensive self-driving software this year. Additionally, he promised that Tesla would launch a robotic taxi next year. Musk also put a name to the company’s humanoid robot – Optimus. I’m not too excited about any of this. Elon Musk has a history of overpromising on futuristic technology.
What I been glad to hear confirmation that the Tesla Cybertruck will go into production in 2023. Given North America’s appetite for pickup trucks, the company’s battery-powered pickup will be a critical release. Additionally, it has been confirmed that this Gigafactory will produce Tesla’s new batteries. Musk also claimed that the Tesla Semi and Roadster will go into production next year. If so, these releases would be the icing on the cake for what is shaping up to be one of the company’s most important years.
TSLA stock recently got notable upgrades for analysts
Looking ahead to the Cyber Rodeo and again thereafter, TSLA stock received notable upgrades from analysts.
As I wrote last week, Deutsche Bank raised its price target for TSLA to $1,200 based on projections that Tesla was on track to deliver 1.5 million electric vehicles in 2022. After Tesla wrapped up its Cyber Rodeo event, Wedbush analyst Dan Ives raised his price target for TSLA stock to $1,400. Ives believes the Austin Gigafactory — the largest factory complex in the world by volume — signals a new beginning for the company.
Both of these analysts were already bullish on Tesla stock. Updated price targets (representing 20% and 40% upside respectively) show that they expect the company’s latest metrics to have a big impact. If you’re considering adding TSLA stocks to your portfolio, there’s the bullish case for you.
Should you buy TSLA stock?
Tesla is one of those companies that arouses very strong emotions. Part of that is no doubt a reflection of people’s opinions of CEO Elon Musk. Some people also continue to have mixed feelings about the electric vehicle industry as a whole. Is it really going to take off and go mainstream, or is it another false start? Even if so, will Tesla maintain its leadership position once the auto giants recalibrate?
These questions and concerns are reflected in analysts’ outlook on Tesla.
Clearly, Deutsche Bank and Wedbush Securities are bullish on TSLA shares. This is a majority view in the industry, but there are exceptions and they can be extreme. For example, of the investment analysts surveyed by the the wall street journal, TSLA gets a consensus rating of “overweight”. However, of the 41 analysts tracked, six have rated TSLA as a “sell.” And while the average price target among WSJ analysts is $982.93, one has a price target of $67 for TSLA stock.
As for portfolio binder, plug in the data for Tesla and it comes out with a very impressive “A” grade. The case for adding TSLA stocks to your growth portfolio becomes even more compelling with its current weakness. The Cyber Rodeo showed that Tesla investors have a lot to look forward to, on top of the company’s current strong performance.
As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.