Tesla Inc (NASDAQ:TSLA) stock had been on a tearing run from back in May of 2019 up until the coronavirus pandemic sank stocks in March this year. The stock had zoomed from $200 per share to $900 per share during that run.
What Are Analysts Saying?
However, the coronavirus pandemic has hit the stock pretty hard, and in a few weeks, the Tesla stock has lost much of the gains that it had made over the past months. In such a situation, it is perhaps time for investors to take stock of the situation and figure out whether the stock is going to rebound soon.
One thing that investors need to keep in mind is the fact that Tesla is a stock that divides opinions. While there are bullish analysts who state that this could be a buying opportunity, bearish analysts have cited the weakness in the automobile industry and lowered price targets.
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Alexander Potter of Piper Sandler set the price target for Tesla at $800 a share and implied that the current valuation of the stock is not justified. Bearish analysts have set the price target to as low as $300 a share. It should be noted that the sales of light vehicles are expected to crash by 30% to 40% in March.
On the other hand, an analyst at Benchmark named Michael Ward pointed out that the traffic in showrooms crashed by 25% to 50% in the first week of March. Over the past days, there has been no traffic at the showrooms due to the lockdowns.
That being said, it needs to be pointed out that there has been no bad news specific to Tesla. The company had to halt most of its activities at the Fremont facility. Later on, it was reported that two of its employees had tested positive for coronavirus. The stock is going to continue to divide opinions, but experts believe that in 2020, the bears might just have the edge.