Photo: CNBC
As Tesla shares continue to be sold off, one analyst is pointing out that the stock could be nearing its bottom and represents a good opportunity for investors.
CFRA senior equity analyst Garrett Nelson says the current landscape is a good opportunity to buy Tesla shares, as stated in an interview on CNBC‘s “Squawk Box.”
“We think this is a really good buying opportunity [for Tesla’s stock], following the recent selloff,” Nelson said.
Tesla Can Now Make Enough 4680 Batteries for 1,000 Cars Per Week https://t.co/JjF0B8JfG1
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Nelson said that much of the fall is related to a broader EV selloff, even with the company losing around 11 percent earlier this week. When asked what could be driving this kind of a selloff, Nelson noted the announcement of extra production downtime at Giga Shanghai, also adding that he thinks recent media surrounding Tesla has been exaggerated.
He also notes that he believes Tesla isn’t being given enough credit for some “potential positives” ahead, including expectations for a company stock buyback, which he says could be valued somewhere between $5 and $10 billion.
Additionally, Nelson notes that Tesla’s entry-level Model 3 and Y vehicles will become eligible for a $7,500 federal tax credit in just a few days.
Tesla’s market cap has dropped nearly $720 billion in 2022 so far, but investors continue to ‘buy the dip’, including Cathie Wood of ARK Invest. As of writing, Tesla shares are up 3.82% for the day, trading at $113.27 per share.
