Bean Capital Limited - The EV leader is rising from a 2-year low thanks to a famous bear

GUERNSEY, Virgin Islands, British - May 10, 2023 - PRLog -- According to Citigroup analyst Itay Michaeli, who raised the electric vehicle (EV) maker's stock from sell to neutral on Wednesday.

Following the dramatic decrease in its share price, Michaeli highlighted that Tesla's stock is now selling for around 30 times his profits predictions for this year – a significantly more realistic figure, in his opinion.

Nonetheless, Michaeli warns that competition in the EV market is heating up. However, he believes that if the economy enters a lengthy recession, Tesla's competitive position would improve since a challenging economy will likely take a greater toll on its smaller and less financially stable competitors.

Overall, Michaeli raised his share price projection from $141.33 to $176, representing a 4% decrease from the stock's closing price on Wednesday. He did, however, state that a rise in Tesla's average car selling price and gross margins would prompt him to raise his estimate.

Morgan Stanley analyst Adam Jonas believes Tesla's stock has been oversold. Jonas anticipates that Tesla will be a major beneficiary of the Inflation Reduction Act's EV-focused subsidies. He also mentioned that it is the only carmaker that his business covers that is already profitable from EV sales.

For these reasons, Jonas is significantly more optimistic about Tesla's prospects than Michaeli. He rates the stock as overweight and has a $330 price objective. This further pumped the stock higher after the positions of the said analysts were made public. Further changes are expected moving forwards as the impact of these position switches does not end here.

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