Tesla (NASDAQ: TSLA) stock price bounced back sharply after experiencing downside volatility at the beginning of this month. The shares rebounded from $330 range to an all-time high of $386 after reports of 500K production from Gigafactory.
In addition, bullish comments from Morgan Stanley are adding to investor’s sentiments. Tesla shares grew more than 14% in the past five days alone; the stock is flying towards $400 level for the first time in history. The demand for EV is likely to grow at an immense pace in the coming years.
This is because of consumers move towards electric vehicles. Moreover, governments all over the world are also planning to persuade people to use EV’s in order to combat pollution and global warming.
Gigafactory 4 Production could Hit 500k Per Year
Tesla announced that they are seeking to produce a 500K electric vehicle from Gigafactory 4 that is situated on the outskirts of Berlin. The factory will help in creating 10,000 jobs. On the other hand, its Gigafactory 3 in China has already started production.
Tesla says it expects to produce close to 1K Model 3 cars each week from Gigafactory 3 by the end of the year. Above all, Tesla’s Model 3 is added to a list of vehicles that are likely to receive subsidies and tariff exemptions.
Analysts Started Presenting $500 Case for Tesla Stock Price
Morgan Stanley analyst Adam Jonas increased Tesla’s stock price target to $500 after the launch of Cybertruck. The analyst said, “We are prepared for a potential surge in sentiment in H1 2020 but question the sustainability.”
Credit Suisse, on the other hand, is showing confidence in the future fundamentals of EV maker. The firm said, “We believe Tesla is leading in the areas that will likely define the future of carmaking – software, and electrification.” Moreover, the company’s strategy of moving towards profitability is likely to contribute to share price appreciation in fiscal 2020.