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

The most recent sale of Tesla Inc.’s share TSLA,
-0.40%
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,
-0.38%
and Amazon.com Inc. AMZN,
+0.25%
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,
-0.98%
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,
-0.13%
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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