Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Stock Market Decline Has Created An Appealing Entry Opportunity For A High-Growth Company Like Tesla

According to UBS, the stock market decline has given an appealing entry opportunity for a high-growth company like Tesla.

The stock was upgraded by analyst Patrick Hummel, who retained his price target at $1,100. TSLA, +1.25% shares, down 31% on the year, gained nearly 3% in premarket trading.

A record-high order backlog and two new giga-factories are making the operating picture brighter than ever, according to Hummel. In light of the Shanghai blockade, he did lower his profits per share projections for 2022 by 12%.

That vertical integration is expected in the future to result in greater growth and profitability for Tesla over the next several years. According to him, “Tesla can exceed rivals with a combination of in-house cell capacity, its lead over worldwide competitors in employing LFP cells, and its large proportion of directly procured battery resources, lithium above all,” he stated.

Hummel was unfazed by Tesla’s rumored intention to reduce paid staff by 10%. Because of the bleak macro picture, he added, “we believe it is important to step up our efficiency efforts” for a firm developing at such a rapid pace.

Elon Musk’s pursuit of Twitter TWTR, +0.77 percent using pledged Tesla shares to pay his offer has taken a toll on Tesla’s share price. Key guy risk is how some describe Musk.

Dryly, he observes, “Elon Musk remains Tesla’s principal guy, with all the hazards associated with it.” 

The post Stock Market Decline Has Created An Appealing Entry Opportunity For A High-Growth Company Like Tesla appeared first on Best Stocks.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.