Tesla has had a wild week.
The automaker is under investigation in the United States after a fatal accident in Texas and criticized in China after a woman protested at a major auto show.
Morgan Stanley is sticking to the stock. Analyst Adam Jonas raised his target price to $ 900, which is an upward trend of 23%. The stock closed at $ 729.40 on Friday.
All of this came before the Monday afternoon win. Analysts expect a profit of 75 cents per share for the quarter ending in March compared to 25 cents in the previous year. according to FactSet. Revenue is said to have increased 75% to $ 10.48 billion.
Danielle Shay, director of options at Simpler Trading, says recent bad news surrounding the company has kept the stock under wraps.
“That actually puts it in a great position if you look at the earnings report. If you look at the way Tesla did on earnings – yes, last quarter they pulled out after earnings, but that was it Tesla had previously made a higher profit after doubling its share price throughout the quarter, “Shay told CNBC’s” Trading Nation “on Friday.
History should repeat itself this quarter, she predicts.
“It’s a great place to sell put credit spreads either at-the-money or out-of-the-money to really take advantage of this high implied volatility on all the Tesla news, and I’m looking for a stock that can trade higher according to the report “said Shay.
Even if things don’t go that way, Shay is still bullish on the stock. She says that every withdrawal is an opportunity to buy on weakness.
Craig Johnson, Chief Marketing Technician at Piper Sandler, is also a Tesla fan on his way to profit.
“The stock is still down 20% from its highs … [but] We broke the uptrend support line and in my view this is a stock to buy on the way to profit. If you look back at the quarterly profit deductions, you can see that this stock has bottomed out 70% of the time. “
Tesla’s parabolic spike in 2020 has resulted in medium growth this year. The stock gained 3% in 2021, trailing the S&P 500’s 11% gain
Disclaimer of liability
