SimpleFX: Should you buy or sell Tesla stock?

On several occasions, we have presented on the movements in the stock market, particularly of the big ones in technology such as Amazon. In today’s article, the folks at SimpleFX prepared an analysis for us to determine whether it is worth buying or selling Tesla stock.

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Situation with Tesla
Tesla attracted attention last week after breaking the $1,000 per share barrier for the first time. On Wednesday, Tesla shares shot up to an all-time high of $1,026 and closed with a 9% increase to $1,024. The spike seems to be prompting traders to become optimistic. But will the price maintain momentum?

In addition, the company’s CEO Elon Musk expressed his intention to „do his best“ in volume production of Tesla Semi, the company’s large platform commercial truck, by encouraging more investors. Moreover, the Chinese government’s approval of mass production of Tesla’s Model 3 with lithium-ion phosphate batteries is another factor contributing to the increase.

As climate change awareness increases, investors are looking to greener industries like Tesla, which is dominating the EV market. Tesla is leaning towards clean energy generation and zero emissions.

Stock Analysis

Tesla’s (NASDAQ: TSLA) actions fought well against the anxieties of the Coronavirus pandemic. TSLA.US rose 129% in less than 6 months, despite the temporary closure of Tesla’s main factory in California for more than 1 month earlier this year. The company’s market capitalization increased to $190 billion. It is approaching Toyota’s market value at $216 billion.

Ron Baron, a well-known billionaire mutual fund manager, is one of Tesla’s early investors and believes the company will generate $1 billion in revenue in 10 years. His investment has earned four times, and he expects it to double or triple in 5 years.

In addition, Wedbush Securities analyst Dan Ives raised his bullish price target from $1,350 to $1,500, based on Tesla’s rapid deployment and growing demand in China. He added that the Shanghai Gigafactory can make 100,000 deliveries in its first year.

Meanwhile, Morgan Stanley and Goldman Sachs downgraded Tesla’s rating on June 11. Morgan Stanley’s Adam Jonas downgraded Tesla from „equal weight“ to „underweight,“ saying that Tesla’s recent stock price increase above $1,000 does not reflect emerging risks. He cited the company’s price cuts as implying weak demand and that growing tension between China and the United States could affect Tesla disproportionately compared to its competitors.

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SimpleFX can help
Take advantage of the upcoming price changes and trade Tesla CFDs now. You can make a profit whenever the price of Tesla shares goes up or down. Create a free SimpleFX account with your email address. There is no minimum deposit. Trade online anywhere using your desktop computers or smartphones.

The Tesla stock trading interface from SimpleFX.
The interface for trading Tesla stocks from SimpleFX.
To trade Tesla shares, go to SimpleFX WebTrader and search for „TSLA.US“ in the search bar at the top of the screen. Then click „New Order“ at the bottom to buy or sell. Enjoy commission-free trading with up to 500x leverage – trade Tesla CFDs today!

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