Tesla’s stock jumped on Thursday after yet another analyst upgraded the stock to a buy rating, with many experts on Wall Street remaining optimistic that Elon Musk’s electric-vehicle maker still has massive upside and long-term growth potential despite a selloff.
Shares of Tesla have fallen more than 30% so far this year, as growth stocks struggled to win investors who are worried about rising interest rates and surging inflation leading to a recession.
More than half of Wall Street analysts covering the stock remain bullish about the company’s long-term growth prospects, however, arguing that Tesla will continue to be the dominant player in the fast-growing electric vehicle market.
It is “time to be bold” as the recent pullback in the stock offers an “attractive entry point” for investors, with Tesla trading near historic lows on a price-to-earnings basis, UBS analyst Patrick Hummel said in a recent note.
Shares of Tesla jumped nearly 3% on Thursday after UBS upgraded the stock to a “buy” rating with an $1,100-per-share price target, which would imply upside of more than 50% from current levels.
Garrett Nelson, vice president and senior equity analyst at CFRA Research, reiterated Tesla as a “strong buy” last week, giving it a price target of $1,200 per share on the company’s “long-term growth potential.”
Also boosting Tesla’s stock higher on Thursday was news that the company’s factory in Shanghai produced over 33,000 cars in May, a 212% increase from the previous month, when the factory was closed due to strict Covid-19 lockdowns in the city.