Oversold shares of Tesla (TSLA) are just starting to pivot higher.
For one, the electric vehicle stock just caught strong support, and is starting to push higher from over-extensions on relative strength (RSI), MACD and Williams’ %R.
Moving forward, we believe TSLA could easily retest $439.74 again shortly – especially with a good deal of negativity now priced into the stock.
Analysts are Incredibly Bullish on Tesla
Fueling momentum, analysts at Benchmark just initiated coverage of TSLA with a buy rating with a price target of $475. The firm cited growth opportunities in autonomous vehicles, robotics, energy solutions and the electric vehicle market as catalysts.
Benchmark added, “We believe the Robotaxi provides a huge opportunity to develop a self-sustaining ecosystem,” Benchmark stated, envisioning a model where Tesla owns and operates a growing fleet of self-driving cars, as noted by Investing.com. Plus, Tesla is expected to launch its full-self driving program this June.
Wedbush analyst Dan Ives also reiterated an outperform rating on the Tesla stock with a one-year price target of $550 per share. Ives believes the relationship between Elon Musk and President Trump could pave the way for Tesla to benefit from potential federal autonomous vehicle programs. The analyst also believes that autonomous potential could unlock a $1 trillion opportunity for the electric vehicle stock.
We also have to consider that President Trump could have a substantial impact on autonomous vehicles. According to HKLaw.com, “The incoming Trump Administration’s deregulatory approach, history of advancing pro-AV policies in its first term and Elon Musk’s prominent role in the campaign have generated a widespread belief that the next four years will be transformational for the development and deployment of emerging technologies, such as AVs.”
In short, there’s plenty to get excited about with Tesla moving forward.
We would use weakness as an opportunity to buy and hold Tesla long-term.
Sincerely,
Ian Cooper
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