A jolt of cash can do wonders for morale, and that’s certainly been the case for Tesla, Inc. (NASDAQ:TSLA) over the past few weeks. Indeed, CEO Elon Musk’s recent purchase of $1 billion in company stock has been one of the reasons that TSLA’s share price has been on the rise of late.
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There are other Musk-related tailwinds that have been boosting TSLA, including the board of director’s proposed $1 trillion compensation package that would fully incentivize the CEO to pursue specific benchmarks in the years ahead.
The company has seen its share price increase by over 35% during the past three months, and TSLA has now doubled in value since hitting a post-Liberation Day trough in early April.
One investor known by the pseudonym Envision Research believes that more gains are on the horizon for the Musk-run company.
“Latest insider disclosures and also expected Q3 2025 deliveries suggest a shifted return/risk curve for Tesla, Inc.,” explains the 5-star investor.
Envision gives credit to Musk’s purchase, as it demonstrates the CEO’s “strong confidence” in Tesla. However, the investor is also focusing on improving fundamentals to justify a more bullish take.
In particular, Envision notes that the current quarter’s delivery numbers are likely to surpass Wall Street expectations, giving TSLA another upward boost. In fact, the investor predicts that the expiring EV tax credits at the end of September will push potential customers to bring their purchases forward.
Beyond the U.S. market, Envision is also confident that the lessening tariff worries will be felt, with positive effects on Tesla’s numbers. “With the impacts from trade disruptions (which peaked in Q2 already in my view) fading, I expect improved delivery trends in Europe and China,” adds Envision.
The investor also calculates that the company is improving its economies of scale, decreasing the cost of production per unit. To Envision’s mind, this further supports the bull case.
Previously sitting on the fence, Envision is ready to take the plunge.
“I see a better momentum and sentiment for the stock in the near term,” sums up Envision Research, who is upgrading TSLA to a Buy rating. (To watch Envision Research’s track record, click here)
Wall Street, on the other hand, presents a more mixed picture. With 15 Buys, 12 Holds, and 8 Sells, TSLA carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $329.77 implies losses of more than 25%. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.