The second week of 2022 is underway and the trend of market turbulence shows no signs of ceasing. For a company like Tesla (NASDAQ:TSLA), these volatile patterns have been par for the course. Despite starting the year off on a high note due to impressive delivery statistics, Tesla stock has risen and fallen on almost a daily basis since then.
No doubt, there has been some pessimism among investors regarding the growth potential of the electric vehicle (EV) sector. However, today brings some news from analysts that should give investors cause to look toward the rest of 2022 with optimism. Tesla stock price predictions are increasing across Wall Street, pointing toward a promising year ahead.
Tesla Stock Price Predictions: What to Expect
Despite some turbulence earlier today, Tesla stock is currently in the green. As of this writing, it’s up around 0.30% for the day. While the stock remains in the red for the week by more than 7%, today’s growth is promising. TSLA is also still in the green for the past one month with gains of more than 4%.
Today’s performance is likely prompted by recent positive analyst reports that foresee Tesla stock rising throughout 2022. The week began with Goldman Sachs analyst Mark Delaney issuing a bullish take on the stock, increasing his 12-month price target to $1,200 while maintaining a “buy” rating. As he sees it, Tesla is the best-positioned company to help lead the transition to EVs.
Delaney cited the company’s higher-than-expected deliveries for Q4 2021 as a primary reason behind this mindset. The analyst also notes the following, however:
“We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue.”
Goldman Sachs isn’t the only bank to be raising its Tesla stock price predictions. Yesterday evening saw Morgan Stanley analyst Adam Jonas up his price target to $1,300 while maintaining a “buy” rating. Jonas also feels that the Q4 deliveries will lead to Tesla stock powering higher in 2022. The analyst says the EV race might be more accurately described as a marathon, too: “Tesla is in the lead at mile number 21. Everybody else is at mile 2 or still tying their shoes.”
The Road Ahead for Tesla
While the Tesla stock price predictions issued by Goldman Sachs made it one of the investment bank’s top picks for 2022, yesterday still saw shares fall. However, today’s events should serve to remind us that sometimes market mentality takes time to pick up speed. Once it does, share prices can be quick to rise.
Tesla stock also received a boost today after it was reported that sales of its China-made vehicles had exceeded those of the previous month by 34%. Still, the positive price targets issued within the last two days are likely exactly what the company needs to see investor confidence restored.
All told, it’s clear that Wall Street is regaining confidence in Tesla stock. Despite a rocky start to the year, plenty of experts still consider it to be well-positioned to continue dominating the EV race. If shares come close to reaching these targets, investors will look back on 2022 as an excellent year.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.