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Tesla Stock Surges as an Analyst Raises its Target Price 

Tesla shares surged 13% today soon after Credit Suisse upgraded the company’s ratings from “underperform” to “neutral.” The act prompted high optimism amid generally unpredictable patterns in the stock market. 

Moreover, the stock jumped almost 30% in the past two days. 

Credit Suisse believes that short-term changes in demand will distract some of its competitors, such as General Motors and Ford. Investors expect the two companies to put their transition to electric vehicles aside as they focus on more immediate matters.

Both companies’ slowdown would affect their manufacturing business in the long-term, which benefits the larger firm instead. And so, Credit Suisse analyst Dan Levy raised his target price to $165 to $580.

Tesla’s stock remains below 20 percent form its record high recorded February, but doubled from its March low. Fears of the coronavirus’ impact on the global economy triggered the month-long dive to a market sell-off.

Meanwhile, S&P 500 rallied 2.6 on Tuesday. Some US states began developing plans to reopen their economies as the benchmark remains 16 percent below its mid-February high.

News of the Shanghai Gigafactory also boosted much of the company’s stocks. Sales of the automotive vehicles are starting to pick up around the second quarter, raising optimism.

The company plans to ramp up its electric vehicle production in the region to keep up with revived demand. 

Tesla Data

Analysts believe Tesla will deliver better than expected figures for the first quarter despite the coronavirus’s impact. If it does, it will domino into the second quarter, mostly thanks to its Chinese sales.

The prediction supports the idea that the company will continue to outperform in the stock market for 2020.

Moreover, the firm never adjusted its guidance despite the pandemic. This brought much faith to the leadership of its CEO, Elon Musk, as the market anticipates his every move.

So far, the company expected delivers to top 500,000 for its full-year vehicle deliveries. It sold 10,160 cars in March, a big improvement against 3,900 achieved in February. 

Musk recently unveiled the purpose of the cabin camera in the Model 3 unit. He said it’s for the Robo Taxis, which are planned to launch soon. In fact, the first wave of this fleet is expected to launch soon after the pandemic.

The Model 3 and its recently launched Model 7 accounted for 76,200 sales out of 88,400 in the recent quarter. The total figure was 21% lower than the quarter before, but it was up 40% on a yearly comparison.



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