Tesla stock ‘best idea’ for 2023, analyst says, after worst year ever – Investor’s Business Daily

Tesla stock 'best idea' for 2023, analyst says, after worst year ever - Investor's Business Daily

Tesla (TSLA) stock, after posting its biggest one-day loss in 11 months on Tuesday, rallied Wednesday, as some analysts still view the EV giant as a “best idea” investment in 2023.




X



Tesla shares fell more than 11% to 109.01 on Tuesday amid a Closure of the factory in Shanghai and weak sales figures in China. However, some analysts remain bullish on TSLA. On Wednesday, Ben Kallo of Baird Equity Research lowered his price target for Tesla from 316 to 252, more than 130% above Tuesday’s closing price, and Kallo touted Tesla as a “Best Idea” stock for investors in 2023.

Last week, six analysts lowered their price targets on TSLA stock. However, targets remain well above Tesla’s current price level and analysts generally maintain the buy and outperform ratings.


Tesla Stock 2023: EV Giant faces major challenges in its two megamarkets


Kallo’s bullish view on Tesla comes as TSLA shares are down 42% since early December amid high volumes. Tesla shares rose 3.3% to 112.71 inches Wednesday market trade.

Kallo said investors shouldn’t worry too much about weakening demand in early 2023. The analyst wrote that Tesla has “many demand levers to pull, including an increase in vehicle leasing and additional supercharge incentives” .

Kallo added that Tesla is best positioned in the automotive market as electric vehicles continue to take a share of the overall market.

Baird’s bullish view on Tesla stock on Tuesday follows Wedbush analyst Daniel Ives who also expressed optimism for the EV giant.

Tesla shares are still a bargain for analysts

Ives, a longtime Tesla bull, has recently and repeatedly expressed concern about CEO Elon Musk. Since Musk took over Twitter, analysts say the tweets from the billionaire and the news cycle around him hurting Tesla investors. Musk has used Twitter to make political statements and communicate with people across the political spectrum.

Ives has called Musk’s Twitter attempt a “soap opera” and a “fiasco” that is causing “brand deterioration of Musk and Tesla”. Last week, Ives lowered his Tesla stock price target from 250 to 175, maintaining an “outperform” rating for the stock.

On Tuesday, however, Ives sounded more optimistic. The analyst wrote that about 70% of Tesla stock’s recent sell-off is due to the reaction to Musk and Twitter.

“It would be easy for us (and other bulls) to throw in the towel here and view the short-term headwinds as too fierce to overcome to make the 2023 truce work,” Ives wrote.

The analyst added that if Musk refocuses on Tesla and stops selling TSLA stock “then in our opinion this stock has bottomed out and it works from here.”

“However, any further strategic misstep by Musk will be carefully scrutinized by the Street and further weigh on equities,” he wrote.

Follow Kit Norton on Twitter @KitNorton for more coverage.

YOU MAY ALSO LIKE:

Top funds buy the #1 market leader close to breaking through with 364% growth

Get an edge on the stock market with IBD Digital

Market breaks key levels as Apple tumbles

Lithium Stocks 2023: A Cartel on the Horizon?

Oil markets in motion as embargo deepens; China, India demand Russian discounts

Leave a Reply