A rebound in Tesla Inc shares was set to extend into a third straight session on Friday, recouping more of a record 21% drop earlier this week that wiped $80 billion off the electric-car maker’s market capitalization.
Tesla shares were up 3.2% in trading before the bell, building on a 12.5% jump in the past two days in one of the most volatile weeks this year for technology-related stocks on Wall Street.
The carmaker’s dizzying 500% surge this year has come courtesy of improved headline results and a flood of money into technology-linked shares, but Wall Street analysts are still less convinced about the company’s longer-term prospects.
The median price target on the stock is $300 – well below its Sept. 1 record high of $502.49, according to Refinitiv data, and of the 33 analysts covering the stock, 15 rate it “hold” and 10 “sell” or lower.
As investors look to “Battery Day” on Sept. 22 that is expected to showcase Tesla’s latest improvements, the company still faces a long development path requiring huge investment if it is to durably challenge the world’s biggest manufacturers.
“We (and the market) expect the announcements to be significant, cementing Tesla’s cost and technology lead for several more years,” UBS autos analyst Patrick Hummel wrote in a note, listing a series of announcements he expected from the day and doubling his price target to $325.
“(But) for as long as there is no big ‘one more thing’ on the agenda, we think all of the above is already fully discounted.”
Separately, sources told Reuters on Friday Tesla is planning to export Model 3 vehicles made in China to Asian and European markets. The automaker is expanding its manufacturing base in China to make Model Y sports-utility vehicles and adding lines to make more battery packs, electric motors and motor controllers.
Tesla’s shares closed at $371.34 on Thursday.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Comments
0 comment