Tesla shares which were once dubbed the sore thumb of South Korean small investors, have seen a rebound for seven consecutive days, making a stunning comeback. Expectations of further increases in share prices dominated the securities market as analysts continued to raise the price target.
According to Investing.com on Thursday, Tesla’s shares on the Nasdaq closed at $246.39, up 6.54% from the previous night’s trading.
The figure is the highest since January 2 when it closed at $248.42. It’s within the sight of reaching an annual high.
A year ago, Tesla’s stock price was nearing $300, but it started a downward trend, even dropping to $138.80 in April this year. During this period, Korean investors turned to buying Nvidia stocks.
However, starting from June 25, its shares surged 34.94% riding on a 1-week rally. Notably, from July 1-3, shares sharply rose by 6.05%, 10.20%, and 6.54% respectively, climbing nearly $50 (24.51%).
The latest recovery trends seem to be largely driven by the announcement of its Q2 car production and delivery figures. According to the financial information company FactSet, Tesla’s projected total car deliveries for Q2 reached 443,956 units, with production tallying at 418,310 units.
With the positive outlook, the Wall Street analysts seem to be shifting their stance on Tesla. Dan Ives of Wedbush Securities has increased Tesla’s 12-month forward target price by 9%, adjusting it from $275 to $300.
In particular, Ives predicts that Tesla’s stock price will reach $400 next year, surpassing its all-time high of $381.59 recorded in January 2021.
He explained, “After a very rocky start of the year, Elon Musk and Tesla have now made a significant positive turnaround. The stronger-than-expected vehicle production and delivery numbers represent a critical turning point for Tesla’s stock price.”
Ives added, “Especially as demand for electric vehicles (EV) stabilizes in China, Tesla’s progress towards its annual sales target of 2 million units will be achieved within the next few quarters.”
