- After a three week rally, Tesla (TSLA) stock has slipped 7%.
- The company’s latest GigaFest was held on Thursday evening at its Austin Gigafactory, and Deutsche Bank just issued an upgrade.
- Investors should buy Tesla stock now to take advantage of this week’s drop.
Tesla (NASDAQ:TSLA) may be firing on all cylinders amid a red-hot EV market, but TSLA stock had a rough start to the year. By the time February was winding down, shares had lost 36% of their value. Compared to November 2021’s record highs, the damage was even worse. However, starting in mid-March, shares began an extended rally.
Tesla has experienced a series of challenges which I wrote about. These included dramatically surging prices for nickel that sent EV battery prices skyrocketing. The company was forced to raise prices — multiple times — in response. In addition, Covid-19 shutdowns were hitting Tesla’s Shanghai China factory.
Despite the negatives, TSLA stock rallied strongly. It went from a $766.37 close on March 14 to $1,145.45 on April 4. Among the catalysts were a strong first quarter with record vehicle deliveries (more on that shortly) and news of a planned stock split.
However, there was a correction on Tuesday and Wednesday that sent TSLA stock to a $1045.76 close on Wednesday. Investors have the opportunity to snap up shares before the rally resumes.
| Ticker | Company | Current Price |
| TSLA | Tesla | $1,035.77 |
Deutsche Bank Issues an Upgrade for TSLA Stock
The latest positive for TSLA stock came on Wednesday evening. Deutsche Bank analyst Emmanuel Rosner maintained his “buy” rating for Tesla, but upped his price target to $1,200. That represents 15% upside from Wednesday’s close.
As reported by TipRanks, Rosner cited Tesla’s Q1 vehicle deliveries of 310,000 (a 68% year-over-year increase). The numbers are all the more impressive given the challenges Tesla has faced, including ongoing supply chain disruption. Rosner noted that these issues have proved to be a setback for many automakers, but Tesla has managed to continue to execute at an impressive level. In addition, Rosner believes that with Tesla’s Berlin and Texas Gigafactories coming online, the company is well-positioned to deliver 1.5 million units for 2022.
For point of comparison, in 2021 Tesla produced 930,422 EVs and delivered 936,222. Both numbers were records, with production up 82.5% YoY and deliveries up 87.4% YoY.
Not all analysts are as bullish as Deutsche Bank, but if you agree with Rosner’s logic, then now is the time to make a move on TSLA stock.
Bottom Line: Should You Buy TSLA Stock?
Tesla may have hit some speed bumps like increased battery component costs and Cyber Truck delays. There are macro economic factors like inflation at play as well. They are making Tesla EVs more expensive and could cut into consumer spending — which might impact Tesla sales.
That being said, the overall picture of Tesla is optimistic. This Portfolio Grader “A” rated stock has proven its value as part of a growth portfolio. If it has had a few rough days, that’s just an opportunity to pick up TSLA stock at a discount. With a recent high-profile upgrade and the GigaFest Austin party behind it, time may be running out to make a move.
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.
