Tesla (TSLA) is starting to pivot higher from strong support and over-extensions on RSI, MACD, and Williams’ %R.
Granted, a good number of analysts recently downgraded the EV stock, but it appears the negativity has been priced into the stock. From a current price of $190.93, we’d like to see TSLA initially refill its bearish gap around $210.
Even Morgan Stanley says Tesla is a buy here with a $345 price target, despite ugly earnings. Cathie Wood’s funds also bought the latest dip in TSLA, picking up 690,000 shares this month.
“We think it shows conviction in the long-term story and we believe a lot of investors were waiting for a buying opportunity after TSLA shares more than doubled last year,” said Garrett Nelson, vice president and senior equity analyst at CFRA Research, as quoted by Fortune.com. “They are getting that opportunity now with the stock’s year-to-date selloff.”
Analysts at Baird also reiterated an outperform rating on TSLA, noting, “TSLA has numerous projects underway which could contribute to growth over time. While we continue to believe increased production capacity and new product introductions provide a steady cadence of upcoming catalysts.”
