Despite an embarrassing debut of the cybertruck last week, which saw shares in the stock drop 6%, orders for the electronic pick up truck are through 200,000.
Whilst the Tesla share price hit a low of $330 following the launch, its still up a solid 6.8% on the month and booked gains of 1% in the previous session. The stock is trading higher once again in the pre-market today.
Whilst the cybertruck grabbed our attention and achieved orders from hardcore Tesla fans, it is unlikely to win over a wider audience. However, Tesla is also performing a quiet revolution in China. Last Friday the made in China Model 3 was made available in Tesla stores across China. The number of Tesla service centres is being upped from 29 to 63, whilst fast charging stations are being increased from 39 to 362 indicating the ramp up in orders expected.
Tesla shares have been in demand since reporting quarterly profits following $1 billion loss in the first half of the year. The stock is up over 35% so far this quarter.
Wall Street analysts opinions on Tesla remain firmly divided. According to FactSet, of 33 analysts, 13 consider Tesla a buy, 9 a hold and 11 have given it a sell rating. The average target price was $319 representing a 15% downside from its current price.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.