Citigroup (C) raised tesla (TSLA) The stock on Wednesday fell nearly 52% in 2022, even though the EV giant was a loser this year, retreating to levels when the company joined the S&P 500. Tesla shares rose on Wednesday.
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Citi analyst Itay Michaeli moved Tesla stock from “sell” to “neutral” on Wednesday. Michaeli also increased his price target to $176 from the previous $141.33. Michaeli told investors that the pullback of Tesla shares in 2022 “balances” short-term risk and return.
The Citi analyst also cited the recently signed Inflation Reduction Act and its support for EV and lithium battery expansion as reasons for long-term optimism regarding Tesla stock.
Tesla stock rose 7.9% to 183.30 on Wednesday. market trading. On Tuesday, the stock closed up 1.2% at 169.91. Earlier on Wednesday, Reuters reported that CEO Elon Musk stated that South Korea is the best candidate for a potential Gigafactory investment. The words were reported by Chairman Yoon Suk Yeol after a virtual meeting between Musk and Yoon.
Analyst Tesla Stock Optimism
The Citi research note is as follows Morgan Stanley (WOMAN) analyst Adam Jonas said late Tuesday that Tesla stock’s “price cuts in China, slowing EV demand and other market trends (Twitter, Crypto?)
Jonas has not changed his ‘overweight’ rating for Tesla stock and his $330 price target. Jonas added that Tesla is expected to increase its revenue by 37% in 2023, with free cash flow of approximately $15 billion, equivalent to 1.8 million units.
“All the other pure gaming EV OEMs we’ve looked at are burning significant cash by our estimates,” Jonas wrote.
Tesla On The Road For Worst Year Ever
“We believe that Tesla’s competitive gap could potentially widen, especially as EV prices turn from inflationary to deflationary,” he added. We believe it’s an OEM.”
However, Jonas added his voice to the list of analysts who view Musk’s focus on Twitter and this evolving news cycle as negative for Tesla stock.
he is november 11, a prominent analyst and longtime Tesla stock bull issued a warning That Musk’s Twitter magic hurt Tesla.
“While it’s hard to quantify, we believe there must be some sort of ‘circuit breaker’ sentiment around the Twitter situation to allay investor concerns about Tesla,” Jonas said on Tuesday.
Tesla Stock, Musk and Twitter
Since Musk took over Twitter in October. On December 28, Tesla stock fell about 25%.
While Musk frequently tweets about his plans and policies, he cut off about half of the social media site’s staff. Musk also personally responded to customer complaints and suggestions. There is widespread confusion about the rollout of verification features, and there is speculation that the company may go into bankruptcy.
musk too 19.5 million Tesla shares sold The decision to sell part of 4, 7 and 8 Tesla shares for $3.95 billion in November comes just days after Musk finalized his $44 billion Twitter purchase.
Last week, Musk testified in a Delaware court to defend himself in a shareholder lawsuit.
While testifying, Musk said he expected “to reduce my time on Twitter and find someone else to lead Twitter in time,” according to reports.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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