Tesla (TSLAAfter suffering its worst single-day loss in 11 months on Tuesday, it rose on Wednesday as some analysts still view the electric vehicle giant as a “best idea” investment in 2023.
Tesla stock fell more than 11% to 109.01 on Tuesday amid Shanghai factory closures and weak China sales data. However, at least some analysts remain bullish on TSLA. On Wednesday, Ben Kallo of Baird Equity Research lowered his target for Tesla’s price to 252, down from 316. That puts the target more than 130% above Tuesday’s closing price, and Kallo called Tesla the “best idea” for investors in 2023.
last week, Six analysts lowered their price target on TSLA shares. However, targets remain well above the current price level for Tesla stock, and analysts have broadly maintained Buy and Outperform ratings.
Kallo’s bullish view on Tesla comes as TSLA shares are down 42% since the beginning of December amid heavy trading volume. Tesla shares advanced 3.3% to 112.71 in Trade on Wednesday in the market.
Callow said investors should not be overly concerned about weak demand as early as 2023. The analyst wrote that Tesla “has several demand levers to pull including increased car rental and additional supercharging incentives.”
Calo added that Tesla is the best in the auto market as electric cars continue to gain share of the total market.
Baird’s bullish take on Tesla stock follows after Wedbush analyst Daniel Ives on Tuesday also expressed optimism about the EV giant.
Tesla stock is still a buy for analysts
Ives, an old Tesla bull, has repeatedly expressed his concerns with CEO Elon Musk. Since Musk acquired Twitter, analysts said billionaire W The news cycle surrounding it It hurts Tesla investors. Use Twitter Mask to make political statements and interact with people across the political spectrum.
Ives has called Musk’s endeavor on Twitter a “soap opera” and a “fiasco” that is causing “brand degradation for Musk and Tesla”. Last week, Ives lowered Tesla’s stock price target to 175 from 250, while maintaining a “outperform” rating for the stock.
However, Ives sounded more optimistic on Tuesday. The analyst writes that about 70% of the recent Tesla stock sell-off is due to the backlash on Musk and Twitter.
“It would be easy for us (and other bulls) to throw in the towel here and view the near-term headwinds as too fierce to overcome for the stock to run in 2023,” Ives wrote.
The analyst added that if Musk refocuses on Tesla and stops selling TSLA shares, “this stock has bottomed out in our view and works from here.”
“However, any further strategic missteps by Musk will be carefully scrutinized by the Street and weigh more heavily on the stock,” he wrote.
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