Tesla (TSLA) is accelerating.
Last trading at $158, it could retest $200 this year.
For one, the electric vehicle boom has only just begun. Globally, 10% of all new autos bought were EVs last year and could soar to 40% by the end of the decade, says Bloomberg NEF. Meanwhile, new tax credits for EVs are being phased in this year in the U.S., and. more automakers are ramping up their production of EVs.
Two, Tesla just reported EPS of $1.19, which beat by six cents. Better, “Demand has been the biggest question entering 2023 after recent price cuts and fear of a macro slowdown,” said Baird analysts. “Demand [is] still strong and outpacing production capacity.”
Three, CEO Elon Musk added that orders were outpacing production two to one. Four, analysts at Mizuho rate TSLA as a buy, with a price target of $252. With TSLA showing signs of life again, and the EV boom taking off, TSLA could easily see $200.