Bloomberg
Tesla shares recovery after sharp five-day decline
(Bloomberg) – Tesla Inc.’s shares rebounded on Tuesday after a five-day losing streak sweeping about $ 149 billion from the company’s valuation. A steady stream of positive news – including an update from a Wall Street analyst, a rise in Bitcoin cryptocurrency and a broader shift in sentiment towards high-tech stocks – are attracting investors back to electric vehicle makers and Tesla . Shares in the company led by Elon Musk rose up to 14% on Tuesday, after falling 22% in the last five sessions. However, precipitous declines are nothing new for Tesla investors. The shares had three sharp sales of more than 30% in a period of about a month since the beginning of 2020. While the market has soured recently with expensive growth stocks like Tesla amid an increase in Treasury yields, the stock’s EV maker have also been hit hard because a number of old car makers this year announced their plans to push aggressively towards the electrification trend. However, a sharp drop in shares can be an opportunity to buy the shares. On Tuesday, New Street Research analyst Pierre Ferragu updated Tesla to buy the equivalent of a wait, saying the company has a two-year earnings boost ahead of it and its demand outlook is stronger than supply ever it could be. The New Street forecast implies that Tesla could deliver $ 12 EPS in 2023, the analyst said in a note. Analysts’ average earnings estimate for the period is $ 7.73 per share, according to data compiled by Bloomberg. “With this earnings review, we expect the stock to remain at the upper end of the 50-100x range, similar to where Amazon traded for nearly a decade, and below today’s 100x multiple,” said Ferragu. Smaller EV makers and suppliers also recovered, including shares in Nio Inc., XPeng Inc., Workhorse Group Inc., Nikola Corp., Li Auto Inc. and Canoo Inc. Chinese names were also driven by a smaller loss in 4Q XPeng and reports that Nio and Xpeng were considering a second listing in Hong Kong. (Update the chart, move stocks and add other EV maker moves in the last paragraph.) For more articles like this, visit us at bloomberg.comSubscribe now to stay on top of the most trusted business news source. © 2021 Bloomberg LP