Tesla bounces back on track for best day in a year
On Tuesday, shares of Tesla rose 14% bouncing back from a deep sell-off and on track for their largest one-day gain in about a year after data showed an increase in China sales and an analyst raised his rating on the electric car maker.
The increase added $75 billion to Tesla’s market capitalization. This would end a five-day streak of losses for the company in a Nasdaq recession in which investors spooked by rising interest rates have abandoned growth stocks with heady valuations.
Pierre Ferragu, a New Street Research analyst raised his Tesla rating to “buy” from “neutral,” and updated his target price to $900 from $578.
Tesla’s stock was last at $643 and it was heading for its strongest one-day performance since March 24, 2020.
“As much as the market severely corrected the recent excesses of optimism reflected in Tesla’s valuation, our recent work strengthened our confidence about the solid outlook for the company in the next 2 years,” Ferragu said in a client note.
Chinese auto industry body CPCA said that in February Tesla sold 18,318 China-made vehicles from 15,484 in January.
Tesla’s stock remains up about 70% over the past six months after the recent market volatility. According to Refinitiv, thirteen analysts have neutral ratings on Tesla, while 12 recommend buying and 10 recommend selling.
