- Tesla (TSLA) market footprint in Europe is expanding with a new factory.
- The share price could still be cheap even after a recent comeback.
- Investors should stay the course and hold their Tesla shares for the long run.
Austin, Texas-headquartered Tesla (NASDAQ:TSLA) stock is emblematic of a gutsy, disruptive vision of a more sustainable planet. TSLA stock is worth owning as the ESG (environmental, social and governance) movement is undoubtedly here to stay in the 2020s.
With the share price returning to $1,000 recently, however, some folks might hesitate to take a long position. Moreover, the current shareholders may be thinking about taking profits, out of fear that Tesla shares are overbought (too expensive).
On the other hand, an argument could actually be constructed that the shares aren’t overbought, and may even be oversold. As Tesla expands its presence internationally, the company’s growth story becomes all the more compelling and the bullish thesis is only getting stronger.
| TSLA | Tesla | $1,083.26 |
What’s Happening with TSLA Stock?
After topping out at $1,243.49 last year, TSLA stock’s cooling-off period was probably overdue. Remember, stocks can’t just go straight up, even if the company is a good one.
Thus, the pullback to $760 in March 2022 could be viewed as normal, natural and healthy. Perhaps it was even necessary as Tesla shareholders should seek multi-year returns, not immediate payouts.
While it was scary in the moment, buying TSLA stock at $760 actually turned out to be a smart move. Not long ago, the stock came right back to $1,000, and the path to all-time highs sure seems clearer now.
Of course, the rising oil price could help Tesla and its shareholders. Cars that run on internal combustion engines aren’t as cost-effective as they used to be, and oil-price inflation is undoubtedly stressful for many people but it’s great news for Tesla.
Amid this backdrop, Tesla evidently has big dreams that could become a reality. As CFRA analyst Garrett Nelson points out, Tesla’s goal is to increase its annual automobile sales from around 500,00 vehicles sold in 2020, to 20 million by 2030.
A Bargain at $1,000 or More
If that goal is met or even just approached, TSLA stock could potentially put $1,000 far in the rear-view mirror.
And, if any electric vehicle manufacturer is adept at setting goals and meeting them, it’s Tesla. To this point, Nelson observed that Tesla “beat earnings nine of the last 10 quarters.”
That’s an excellent track record, and it probably influenced Nelson to upgrade TSLA stock from “hold” to “buy.”
Also evidently in the bull camp is Wedbush analyst Dan Ives, who actually went so far as to call Tesla shares “way oversold over the past few months.” Could a $1,000+ stock really be a bargain, though?
Indeed, it could. As Ives sees it, investors have just recently come to “appreciate what the seminal launch of Giga Berlin means for the Tesla supply story in 2022 and beyond.”
He’s referring to Tesla’s major foray into the European electric vehicle market, with the launch of the Germany-based Giga Berlin mega-factory.
Reportedly, this factory can produce half a million vehicles annually. It took a while to open Giga Berlin, but now that it’s up and running, this “removes a major overhang on the stock,” according to Ives.
What You Can Do Now
Between oil-price inflation and the European factory launch, it’s not hard to see the bullish catalysts for TSLA stock. Indeed, it’s probably just a matter of time before the stock breaks through its prior high.
Still, Tesla’s investors should be patient. Like the broader ESG movement, Tesla’s vision extends far beyond this year. So, if you’re on board with this vision, then you can relax and hold your shares.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
