The sale of Tesla shares created ‘generation’ investment opportunity, says analyst

The most recent sale of Tesla Inc.’s share TSLA,
has created a “generational investment opportunity” in one of the most compelling growth stories, said CFRA analyst Garrett Nelson, as he believes the market leader in electric vehicles has a long-term potential similar to technology disruptors such as Apple Inc. AAPL,
and Inc. AMZN,
several years ago. Nelson believes the stock has been “unfairly penalized” from broad tech sales, growing fears of recession, COVID-19-related manufacturing problems, CEO Elon Musk’s bid for Twitter Inc. TWTR,
and the effect of increased competition and costs on earnings. The stock has fallen 32.7% year to date until Tuesday, while the S&P 500 SPX,
has fallen 21.0 per cent. “In our view, these factors have overshadowed several important positive things in Tesla history: outstanding operating and earnings performance, future production growth from the recent start-up of the Austin and Berlin plants, dramatic balance sheet improvements and an impressive pipeline of future products,” he said. Nelson wrote in a note to customers. He said that in the longer term, his $ 1,200 stock price target, which represents 69% upside from Tuesday’s closing price of $ 711.11, will prove to be conservative.

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