Tesla, Inc. (NASDAQ:TSLA) shares have been on a tear in recent sessions and an analyst weighed in on what would keep the stock ticking up.
© Provided by Benzinga
What Happened: For Tesla’s stock to go higher, the electric vehicle maker’s volumes have to grow by more than 39% in 2023 and more than 27% in 2024, which is the current Wall Street consensus, said fund manager Gary Black in a tweet. The other positive influences the Tesla bull mentioned include:
Load Error
22% Compounded annual growth rate of volume between 2023 and 2027 Stable ASPs Gross margin, excluding regulatory credits, rising
“Any combo of global EV adoption, $TSLA EV share, or overall TSLA share growth above this level of [delivery] growth will be viewed positively,” the fund manager said.
Must Read: Elon Musk Takes Swipe At Rivals’ Self-Driving Technology: ‘Brittle And Unscalable’
See Also: Everything You Need To Know About Tesla Stock
2-Variable Forecasting: Black noted that analysts have been using global EV adoption and Tesla’s EV segment share to predict future volumes for years.
“Any combo of EV adoption and TSLA EV share that delivers that level of vol growth or higher is positive for $TSLA stock,” he said.
Using two variables for forecasting rather than one is generally accurate, Black said. He noted that Apple investors have been forecasting smartphone adoption and the company’s smartphone share for years to predict iPhone shipments.
“Even if TSLA BEV share falls modestly TSLA stock can do well if soaring EV adoption offsets it,” he said.
Tesla shares bottomed at $152.37 (intraday basis) on April 27 and have soared over 40% as they ended Friday’s session at $213.97.
In premarket trading on Monday, Tesla shares edged up 0.25% to $214.50, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next: Tesla To The Moon? Why Elon Musk Hints Nvidia’s Large-Cap Dominance Is Only ‘For Now’
Latest Ratings for TSLA
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Daiwa Capital | Upgrades | Neutral | Outperform |
| Feb 2022 | Piper Sandler | Maintains | Overweight | |
| Jan 2022 | Credit Suisse | Upgrades | Neutral | Outperform |
View More Analyst Ratings for TSLA
View the Latest Analyst Ratings
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article Tesla Up 40% Since Late-April Lows: Analyst Outlines 4 Factors That Can Keep Stock Turbocharged originally appeared on Benzinga.com.