CFRA Research analyst and Tesla Inc TSLA bull Garrett Nelson believes that the current fall in the EV giant’s stock is not surprising given shares more than doubled last year.
Recent Developments: Despite Tesla shares falling about 34% year-to-date, the analyst remains optimistic about Tesla and maintains a ‘buy’ rating on the stock.
In a recent interview with Fox Business, Nelson highlighted Tesla’s strong balance sheet, ongoing Cybertruck production ramp-up, upcoming mass-market electric vehicle launch, and the construction of a new factory in Mexico. He mentioned, “Tesla is a lot different than the company it was three or four years ago. There are plenty of catalysts.”
Contrary to legacy automakers scaling back on EV targets and smaller EV manufacturers facing challenges, Nelson emphasized that this environment provides Tesla with the opportunity to expand its market share significantly in the foreseeable future.
“We kind of view Tesla as the best house on a bad block in the Western market, you know, looking at North America and Europe, but there is certainly a ton of competition coming from China,” the analyst pointed out.
Analyst Projection: Nelson maintains a “buy” rating on Tesla with a price target of $275. He predicts that Tesla will surpass Japanese automaker Toyota Motor and become the world’s largest auto manufacturer by the end of this decade.
Stock Performance: Tesla shares closed 0.66% higher on Friday at $163.57 as reported by Benzinga Pro.