Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
TESLA: up to $500 per share or not so fast?
On December 30, Tesla celebrated its first Model-3 vehicle moving off the company’s first overseas plant in Shanghai, China.
What does it mean
Tesla is trying to conquer the Chinese market, being an electric vehicle production pioneer. This goal is pursued because the company sees the strategic importance and vast potential of the Chinese consumer demand. Reaching a success here would mean that Tesla is truly going global.
However, there are various factors against that: a general drop in the Chinese domestic consumer demand as a trade war echo, a mid-term drop in the electric vehicles demand among the population, the vehicles may be affordable for a narrower market segment than what the company expects, the company’s own financial bumps, competitors and others.
Where are we now
The company stock price broke through the previous all-time high of $390 in the middle of December. On the daily chart, $435 per share was reached in one leap, followed by a brief correction down to $403. However, the mentioned first Model-3 appearing from the Tesla Shanghai factory gates pushed the price up again. Consequently, it is now at the current all-time high of $443 per share.
Where is it going
Now, all eyes will be on Tesla’s Chinese sales dynamics. If these go well, eventually, that will prove that the company’s strategic decision to tap into China’s market was the right one. If it happens, the company stock will indeed has all it takes to reach $500 per share as analysts forecast. If not, we will see what else Elon Musk has up his sleeve.
Before you go
You can trade Tesla stock in line with other stocks FBS offers.
To do that, you need to:
- Open MT5 account in your FBS personal area.
- Make a deposit.
- Download MT5.
- Log in and start trading.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
Tesla stock drops in premarket trades on Thursday. Why? See the article (it's short) and use it to your advantage.
The South African Finance Minister is delivering a budget speech today. There may be a strong impact on ZAR, so what's going to happen?
Canadian monthly GDP will be out at 15:30 MT time on Friday.
Let’s consider the best and the worst-performing assets as Monday’s session kicks in.