S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94

Tesla Roars Back And Wall Street Likes It

Thursday, March 11, 2021 | Sam Quirke
Tesla Roars Back And Wall Street Likes ItWith as much as a 30% bounce off multi-month lows in the past few sessions, shares of Tesla (NASDAQ: TSLA) are reminding investors and Wall Street alike just why they’re such a joy to own if you can handle the volatility. It’s never plain sailing with them, however.

As we wrote about earlier this week, Tesla has been among those on the front line as the wider tech market has sold off through February. Their 4 digit price-to-earnings (P/E) ratio had been overlooked all through last year when rates were at rock bottom, but with them starting to poke their heads up in recent weeks Tesla’s frothiness became very obvious.

From the last all-time high they set in the final week of January, shares fell about 40% into March. A sizable haircut to be sure. But if there’s one CEO and one company out there today who’d you back to turn it around just as quickly, it’s Elon Musk and Tesla.

Fresh Upgrades

So thinks Mizuho and New Street Research at least who’ve both come out with Buy ratings on the stock this week. The former are particularly bullish on the company’s advanced battery technology and like its prospects to disrupt the global energy market. This should translate into what they call a “defensible electric vehicle leadership position” and makes them good value for money against a fresh $775 price target.

The latter came at it from a different angle but are just as bullish. New Street Research pointed to the strong demand that’s just waiting for Tesla to feed it, with competition essentially a non-factor for the time being. In a note to clients, they added “with Berlin and Texas ramping, Tesla should reach 2m unit capacity, even is a lot of clouds sit on tight current timelines: building permits in Berlin, a delayed Model S&X refresh, Model Y ramp-up in Shanghai, and the Cybertruck still being in the design-phase. We don’t see any of these risks pushing the 2m mark beyond the end of 2022. This means Tesla should deliver over 2m units in 2023."

With that kind of forecast, they’ve no problem ascribing a price target of $900 to the stock, suggesting upside of some 35% from where it closed on Wednesday. This should be particularly appetizing to investors with cash to deploy and who still back tech to outperform the overall market in the years to come.

Fundamental Drivers

There are also longer-term fundamental factors starting to line up that only serve to strengthen the bull case. Sales numbers for electric vehicles in China have been growing consistently and only this week Tesla reported a 18% month-to-month jump in their February sales there. This was ahead of the general consensus and according to Wedbush was all the more impressive considering the Chinese Lunar New Year holiday has just started.

At the same time and a bit closer to home, 17 US House Democrats are planning to introduce legislation that would give the US Postal Service upwards of $6 billion to spend on electric delivery vehicles. This underlines just how mainstream electric vehicles are becoming and bodes well for Tesla’s ability to continue strengthening its grip on what’s yet a relatively untouched market.

There’s no doubt going to be some bumps on the road, and the current bout of selling mightn’t even be over yet, but Tesla is a stock you can’t help wanting to own some of. With their Relative Strength Index recently falling below 30 for the first time in a year, suggesting shares are oversold, maybe we’ve got a solid entry point on our hands.

Tesla Roars Back And Wall Street Likes It

Tesla is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tesla wasn't on the list.

While Tesla currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)2.4$843.03+3.0%N/A439.08Hold$623.56
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.