Tesla Stock Soars 12% on New ATH: Analysts Predict Bigger Gains

Tesla stock had an explosive start to the week yesterday, jumping 12.66% at the close, above the $ 1,000 threshold for the first time in its history. Tesla indeed closed yesterday at $ 1024.86, after setting an all-time high intraday of $ 1045 during the session, after crossing $ 900 for the first time last Friday.

Tesla’s market capitalization has thus surpassed the $ 1 trillion mark, making Elon Musk’s company the 5th largest company on the US stock exchange, ahead of Facebook and behind Amazon. In this analysis, we will therefore come back to the reasons for the explosion of Tesla stock, and we will assess the future prospects of the stock, in order to determine whether to buy Tesla stock.

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Hertz to buy 100,000 cars from Tesla

Tesla shareIf Tesla stock exploded by more than 12% yesterday, it was due to a massive order from car rental specialist Hertz, which is starting to build its fleet of electric vehicles.

The deal, worth $ 4.2 billion, is the largest electric vehicle order in automotive history. Bloomberg also reported that the cars are expected to be delivered within the next 14 months and will be available to customers in the United States and parts of Europe as early as November, according to respondents.

Technical analysis of the Tesla share: Bullish signal validated yesterday

From a technical point of view, it is undeniable that the trend of Tesla stock is very strongly bullish, as seen on the daily chart below:

Tesla share

However, it should be noted that after an increase of more than 12% yesterday, itself consecutive to two days of increase on Thursday and last Friday, calls for a correction. In this context, the psychological threshold of $ 1000 is the first support to consider, and will be an interesting entry point for investors who have not yet bought Tesla shares, or those who want to strengthen their position.

It is also interesting to note that yesterday’s rise caused the 100-day moving average to cross above the 200-day moving average, which is a strong medium-term bullish signal.

Do analysts recommend buying Tesla stock?

As for the most recent analyst reviews for Tesla stock, it should be noted that:

  • Piper Sandler’s Alexander Potter reiterated his buy recommendation 5 days ago, with a goal of $ 1,200, a upside potential of 17%.
  • Adam Jones, who follows Tesla for Morgan Stanley, recommended buying Tesla stock two days ago, also with a goal of $ 1,200 (+ 17%).
  • Daniel Ives, of Wedbush, yesterday raised his target on Tesla to $ 1,100, or 7.3% above current price.
  • Colin Rush, analyst at Oppenheimer, meanwhile announced a rise in Tesla share to $ 1080 5 days ago, a upside potential of more than 5%.

Finally, it should be noted that most of these opinions having been issued before the announcement of the massive purchase of Hertz yesterday, it is a safe bet that the targets of these analysts will still be significantly raised in the coming days.

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