What happened
Actions of Tesla (NASDAQ: TSLA) it jumped Tuesday morning, rising as much as 6.2%. As of 10:45 a.m. EDT, however, they increased by only about 1.5%.
The rise in growth stocks was fueled by an analyst’s decision to increase its 12-month target price on shares from $ 939 to $ 2,322.
The Tesla model 3. Image source: Tesla.
And that
It is not surprising to see Tesla shares rise after this bullish outlook from Piper analyst Sandler Alexander Potter; A target price of $ 2,322 represents a 50% gain in the next 12 months.
To support his optimism, Potter cites Tesla’s strong potential to lead vehicle technology in the next 10 years. The analyst recommends that investors not sell their shares, despite the monstrous rise in shares in the past 12 months.
Now what
Next week, when the electric car maker reports earnings, investors will see if Tesla is meeting high expectations. Two areas that you will be watching closely are the company’s bottom line for the period and management guidance for year-round vehicle deliveries.
