Investors may want to pay close attention to Tesla (SYM: TSLA).
After bottoming out at around $200, the rebounding electric vehicle stock is back to $221.50. From here, we’d like to see it initially refill its bearish gap at around $250 a share.
Helping, Deutsche Bank just initiated coverage of Tesla with a buy rating with a $295 price target. Tesla isn’t just “an auto maker but rather a technology platform attempting to reshape multiple industries, deserving of a unique type of valuation framework,” added the firm, as quoted by Barron’s. It’s “in a league of its own and represents our highest conviction secular leader, poised to reshape multiple industries across auto, energy, mobility, and robotics.”
Moving forward, Tesla is expected to issue a third quarter deliveries report, which should be out on October 10. We’ll also get its earnings report in October, as well. In its second quarter, Tesla delivered 444,000 vehicles. A year ago, it delivered 435,000. As we near its third quarter delivery numbers, analysts expect to see the delivery of 461,000 vehicles.
In addition, once the Federal Reserve does start cutting interest rates, we could see an acceleration in electric vehicle sales again. According to Cox Automotive Executive Analyst Michelle Krebs, as quoted by Yahoo Finance, “Interest rate cuts ‘will certainly be a huge help. High-interest rates have pushed a lot of people out of the market, have pushed monthly payments really high.’”
Again, keep an eye on Tesla.
As we near interest rate cuts from the Federal Reserve, Tesla could accelerate higher.
