Tesla surged to all-time high
Tesla hit a new record on Thursday. Does it still have the potential to the upside? Let’s look at what analysts say.
What happened?
Tesla stock skyrocketed to the fresh high of $2 295 on Thursday, leaving behind all its rivals – other carmakers. Some analysts believe it happened after the optimistic comment of Jefferies & Co.
The company went public 10 years ago and has managed to increase its value so far from $17.54 to $2 295. It's... impressive, isn't it? On July 1 it has become the world’s most valuable carmaker, outperforming even Toyota. However, in comparison with Toyota and Volkswagen, Tesla sold fewer automobiles. Retail sales in 2019 were, as follows: Toyota – 10.46 million, Volkswagen - 11 million, while Tesla – 367 200 vehicles. Nevertheless, Tesla is developing at a rapid pace, and its’ founder Elon Muck is planning to deliver half a million cars till the end of this year.
Besides, Tesla has succeeded to make a profit in the second quarter of 2020 for the fourth time in a row despite difficulties amid the coronavirus pandemic. That allowed the tech giant to be included in the prestigious S&P 500.
Wedbush’s best-case scenario implies that Tesla may reach $3 500. The main reason is the increased demand for electric cars in China. The company’s new Gigafactory 3 in Shanghai will boost production to meet all the orders. By the way, don’t forget that the soon stock split may add tailwinds to Tesla as well. Analysts say that the psychological effect of owning whole shares in the company people admire will attract more investors. Trading will begin on a split-adjusted basis on August 31. Don’t miss out the moment!
Technical tips
If Tesla’s price breaks through $2 250, it will open doors towards the next resistance of $2 300. In the opposite scenario, the move below the key psychological mark of $2 000 will drive the price lower to the support of $1 860. Follow further news on Tesla and catch the market movement!
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