On Thursday, after yet another analyst upgraded the stock to a buy rating, many experts on Wall Street remained optimistic that the electric-vehicle maker still has huge upside and long-term growth potential despite a selloff.
Analysts say that the selloff in the shares of the electric car maker presents an attractive entry point.
Growth stocks are having a hard time winning investors who are worried about rising interest rates and a potential recession.
More than half of Wall Street analysts covering the stock remain bullish about the company's long-term growth prospects, but they argue that it will continue to be the dominant player in the electric vehicle market.
Patrick Hummel said in a recent note that it is time to be bold as the recent decline in the stock is an attractive entry point for investors.
The stock jumped 3% on Thursday after it was upgraded to a "BUY" rating from a "SELL" rating, which implies an upside of more than 50% from current levels.
The vice president and senior equity analyst at CFRA Research gave a price target of $1,200 per share on the stock last week.
The news that the company produced over 33,000 cars in May, a 212% increase from the previous month, boosted the company's stock price.
Hummel believes the operational outlook is stronger than before. We think that the integration of software and battery will result in superior growth and profitability in the future. He says that the operational momentum of the company is one of the reasons for optimism. The market underestimates how much betterTesla will be.
Musk sent an email to executives at the company saying he had a bad feeling about the economy and was looking to cut 10% of the company's workforce. Wall Street analysts remain undeterred despite the stock's rebound over the last week. Even if Musk does cut some of the workforce, analysts say it won't change the long-term outlook for the company. CFRA analysts say that Musk wants to get ahead of the curve in terms of a downturn in the auto industry.
Forbes has calculated the worth of Musk. The richest person in the world saw his net worth increase as shares of his electric-vehicle maker moved higher.
The value of the stock of the company was wiped out by the negative feelings about the economy.
Analysts say that Musk could try to get out of the deal after it was put on hold.
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