Tesla (TSLA) could see $220 – and fast.
After getting hammered on Chinese lockdowns, Twitter, a potential recession, slowing sales, you name it, Tesla is accelerating again. For one, the electric vehicle boom has only just begun.
Globally, 10% of all new autos bought were EVs last year and could soar to 40% by the end of the decade, says Bloomberg NEF. Meanwhile, new tax credits for EVs are being phased in this year in the U.S., and. more automakers are ramping up their production of EVs.
Two, Tesla just reported EPS of $1.19, which beat by six cents. Better, “Demand has been the biggest question entering 2023 after recent price cuts and fear of a macro slowdown,” said Baird analysts. “Demand [is] still strong and outpacing production capacity.”
Three, soothing investor concerns, the company plans to produce about 1.8 million cars this year, up from about 1.37 million last year. Four, CEO Elon Musk added that orders were outpacing production two to one.
And five, analysts at Mizuho rate TSLA as a buy, with a price target of $252. The firm noted that quarterly profit margins were better than feared, and that while prices are coming down, Tesla has cost offsets to help cushion the margin impact—including better utilization at two new manufacturing plants and falling raw material prices, as noted by Barron’s.
Right now, TSLA is up about 9.5% on the day to $158.12. Volume also just spiked to 181.2 million shares, as compared to daily average volume of 130.19 million shares. Now, if TSLA can break above resistance around $180, it could test $220 shortly after.
With the EV boom only set to accelerate, and Tesla back on the right track, it can happen.