Tesla witnessed a 7% surge in its stock on Monday, marking a halt to the six consecutive days of losses it had been experiencing. This is the company’s most significant one-day percentage increase since its 7.8% ascent on March 21.
Despite this leap, Tesla shares have fallen by 15% this August and primarily displayed a declining pattern subsequent to their second-quarter earnings report released in mid-July, reports Marketwatch.
In a recent note to clients, Baird analyst Ben Kallo drew attention to several promising prospects for Tesla in the latter half of this year. A few of these optimistic developments include the much-anticipated launch of the Cybertruck and potential growth drivers like Tesla’s Full Self-Driving suite.
Kallo noted, “Upcoming catalysts for the stock include the Cybertruck launch, a broader adoption of Full Self Driving, sustained growth in the energy sector, expansion into fresh markets, and a potential AI Day.”
The analyst’s insights also emphasized the potential effects of Tesla’s recent pricing adjustments on its profit margins. He remarked that the narrative for the electric vehicle giant in the upcoming months will hinge on the repercussions of these price cuts.
It’s noteworthy that Tesla unveiled more economical models of its premium Model S sedans and Model X SUVs just last week.
Lending further confidence to the stock, Baird issued an “outperform” rating, tantamount to a “buy” recommendation, with a projected price target of $300. This projection implies a 32% potential growth over Monday’s closing share price.
In a year-to-date overview, Tesla’s stock has appreciated by an impressive 75%, overshadowing the S&P 500’s gain of approximately 14%.
