Tesla stock extends gains to 12% as Bank of America upgrades to Buy
$Tesla(TSLA.US$ $BYD COMPANY(01211.HK$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ The article reported that Tesla stock surged by as much as 11.7% in premarket New York trading Wednesday after the electric vehicle (EV) maker reported earnings for the first quarter, which prompted Bank of America to raise its rating on shares to Buy. BofA maintained its $220 per share price target, which suggested an upside of more than 50% relative to yesterday’s closing price.
Reasons for the upgrade
1) BofA analysts noted better-than-feared results, in addition to management commentary that “addressed key concerns heading into the quarter and revitalized the growth narrative.”
2) The analysts highlighted positive catalysts that are building through the rest of the year, namely new model launches coming sooner than expected, the Robotaxi event on August 8th, cost savings amid recent reports about job cuts, as well as potential licensing of FSD.
My take: When analysts downgraded Tesla stock, it is important to find out the reasons. I discovered that one analyst looks at the company as only a car maker and ignore other positive catalysts. Another analyst only consider the high PE ratio and nothing else. Don't just read the headlines and some biased personal comments - read the content and always ask for sources of info.
1) BofA analysts noted better-than-feared results, in addition to management commentary that “addressed key concerns heading into the quarter and revitalized the growth narrative.”
2) The analysts highlighted positive catalysts that are building through the rest of the year, namely new model launches coming sooner than expected, the Robotaxi event on August 8th, cost savings amid recent reports about job cuts, as well as potential licensing of FSD.
My take: When analysts downgraded Tesla stock, it is important to find out the reasons. I discovered that one analyst looks at the company as only a car maker and ignore other positive catalysts. Another analyst only consider the high PE ratio and nothing else. Don't just read the headlines and some biased personal comments - read the content and always ask for sources of info.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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