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magazineInvestors jump back on Tesla bandwagon as shares soar 80% in weeks
If an example of how fast market moods can change were needed, you’ll find few better than the 2023 version of Tesla (TSLA:NASDAQ). A stock market pariah right through 2022, shares in the electric cars-to-energy firm are up about 80% in the handful of weeks this year, adding $250 billion to its market value.
Optimism from analysts has certainly helped fuel the stock’s rally, the latest from Berenberg, after the investment bank put Tesla on its buy list despite lowering its target share price to $200.
Investors seem willing to buy into the idea that price cuts across a number of models are not necessarily a bad thing, if they
can successfully lure Chinese buyers. The flipside is pressure
on industry-leading margins which is yet to be fully reflected in Tesla’s numbers.
Based on surveys, analysts at Wedbush are also telling clients that the China EV reacceleration story for Tesla is just starting to hit its stride and should be a tailwind in the first quarter.
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