Tesla (NASDAQ: TSLA) stock can rocket higher in 2022 as the bear case fades, says Mizuho Securities. Its target price is $1,300 per share, as the company is “executing well” in a turbulent market.
Tesla received a bullish outlook from Mizuho Securities analyst Vijay Rakesh. He reaffirmed his BUY recommendation, citing the company's continued sales and production success. Despite turbulent market conditions, the analyst set a price target for TSLA stock at $1,300, one of the highest set by Wall Street in recent months.
Of particular note is Rakesh highlighting Tesla's upside potential. While some analysts lowered their share price target due to a temporary shutdown of production in Q2 2022 at Giga Shanghai, Mizuho Securities is looking at the company's development more globally. During a recent interview with CNBC, Rakesh stressed that despite China's manufacturing problems, Tesla has done a good job, which should convince investors of its upside potential.
“We believe TSLA has potentially ~1.4M of its 1.5M C22E target units that could be produced at just Fremont and primarily Shanghai as the major hub,” the analyst said in a note to clients. He acknowledged that a ramp-up at Giga Shanghai is likely to create difficulties in Q2, though he sees no reason to bet against the stock.
“We believe monthly April deliveries were ~40k, down ~22% from Jan's ~51k, therefore the JunQ top line could be down q/q. That said, we believe a potentially stronger SepQ/DecQ rebound is possible with improved supply chains and Berlin ramping.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.