After selling 393,000 shares of Tesla (NASDAQ:TSLA) earlier this month, popular hedge fund manager Cathie Wood once again trimmed her holdings in the EV (Electric Vehicle) giant. Her flagship fund, Ark Innovation ETF (ARKK), sold another 62,415 shares of TSLA. Despite the recent selling, Tesla remains the top holding of ARKK, implying the fund manager remains upbeat about the stock and expects the rally to sustain.
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TSLA stock has gained over 111% year-to-date. The EV maker’s solid monthly auto sales in the past couple of months, agreements to leverage its charging network (Ford Motor Company (NYSE:F) and General Motors (NYSE:GM) agreed to access its Superchargers), and benefits from the Inflation Reduction Act (Tesla’s new Model 3 qualifies for the full $7,500 EV tax credit) led to a rally in its price.
Besides for Cathie Wood, Tom Narayan of RBC Capital and Daniel Ives of Wedbush expect the rally in TSLA to sustain.
Analysts See Further Upside in TSLA Stock
While Tesla stock has gained quite a lot, Ives’ price target of $300 indicates further upside potential. The analyst expects the company to benefit from the ramp-up in production and delivery, recovery in margins, strong demand in China, and battery production from its Nevada Gigafactory. Also, the launch of the Cybertruck and new lower-priced models bode well for growth.
Like Ives, Tom Narayan is also bullish about Tesla stock and raised the price target to $305 from $212. Narayan expects the company’s FSD (Full Self-Driving) software to offset the dilution in margin from lower-priced models.
Overall, Tesla’s in-house cell production, autonomy, and AI-enabled products, next-generation Cybertruck platform, energy storage business, and industry-leading margins will likely fuel future growth.
Is Tesla a Good Stock to Buy Right Now?
Tesla stock sports a Moderate Buy consensus rating on TipRanks, reflecting 16 Buy, 10 Hold, and four Sell recommendations. However, as TSLA stock has more than doubled in the recent past, analysts’ average price target of $213.12 implies 18.2% downside potential.
