After suffering its greatest one-day loss in 11 months on Tuesday, Tesla’s (NASDAQ:TSLA) stock surged on Wednesday as some analysts continued to view the EV powerhouse as a “best idea” investment for the year 2023.
A Shanghai plant closure and subpar China sales figures caused Tesla’s stock to drop more than 11% to 109.01 on Tuesday. But at least a few experts continue to be optimistic about TSLA. Ben Kallo of Baird Equity Research reduced his Tesla price estimate on Wednesday from 316 to 252. With Tesla being hailed as a “Best Idea” stock for investors in 2023, the objective is more than 130% over the stock’s Tuesday closing price.
Six analysts reduced their price targets for TESLA shares last week. Targets, however, continue to be considerably above the current price of Tesla shares, and analysts have largely kept their buy and outperform ratings.
Kallo had a strong outlook on Tesla at a time when TSLA shares have fallen 42% since the start of December on active trading. The price of Tesla stock increased 3.3% on Wednesday to 112.71.
Investors shouldn’t worry too much about declining demand in the first half of 2023, according to Kallo. Tesla “has various demand levers to pull, including an increase in vehicle leasing and more supercharging incentives,” the analyst added.
Kallo threw in As the market share of electric vehicles continues to grow, Tesla is best positioned in the automotive industry.
Wedbush analyst Daniel Ives also expressed optimism for the EV powerhouse on Tuesday, and Baird’s positive outlook on Tesla shares followed his remarks.