Weakness in Tesla (TSLA) may be an opportunity.
After a brief pullback, the EV stock appears to have caught strong support, and could push aggressively higher.
Helping, “Morgan Stanley analyst Adam Jonas raised the firm’s price target on Tesla to $1,300 from $1,200 and keeps an Overweight rating on the shares. The analyst said Q4 deliveries were 20% above his forecast,” according to TheFly.com. “Jonas believes there are signs that the company is accelerating its lead over its EV peers, which should not be construed as a positive for the broader sector.”
Plus, with governments all around the world pushing for bigger EV sales, Tesla is sure to benefit. In fact, the U.S. for example wants about 50% of all car sales to be electric by 2030. In addition, by 2030, it’s expected we’ll see up to 125 million electric vehicles on the road.
In addition, the company is seeing solid sales growth in China.
In fact, Tesla just delivered nearly 71,000 EVs from its Shanghai plant in December, as noted by Barron’s. That’s up from 53,000 in November.
With that, from a current price of $1,064, we’d like to see TSLA test $1,250, near-term.