Wall Street analysts suggest that the decline in Tesla‘s (TSLA) stock has reached a buying opportunity level, which is preventing further decline, as per Electrek.
Share buyback program
It is interesting to note that a share buyback program for the automaker giant has been petitioned by Investors to Tesla’s board of directors.
Notably, there is a possibility that the petition would materialize since more than 5,000 people have signed already. Furthermore, CEO Elon Musk stated last month that a $5 to $10 billion share buyback program was being discussed by the board.
However, the support of Wall Street would only be a marginal aid Tesla’s market capitalization has decreased by close to $500 billion over the past three months.
Nonetheless, Tesla investors must depend on Wall Street to support the stock until the board agrees on a buyback program. Several Wall Street analysts have signaled that the stock is entering buying opportunity levels in response to the stock price decline.
Three Wall Street analysts help Tesla stocks
Tesla’s stock has approximately 100% potential growth, according to Adam Jonas, a Morgan Stanley analyst who covers Tesla. In a new note to clients, he wrote:
“In a slowing economic environment, we believe Tesla’s ‘gap to competition’ can potentially widen, particularly as EV prices pivot from inflationary to deflationary. With respect to the IRA (Inflation Reduction Act) we believe Tesla is by far the best positioned OEM in terms of potential eligibility for consumer tax credits (up to $7,500/unit) and for Section 45x production credits (up to $45/KWh). The current price offers approximately 100% potential upside to our $330 price target which is the highest upside to target we have seen from Tesla in over 5 years.”
Furthermore, Citi analyst Itay Michaeli revised Tesla’s stock rating to neutral as Tesla’s stock now trades for an appealing near-term risk/reward profile.
Dan Ives of Wedbush Securities also released a new note on Tesla. He predicted a strong Q4 with up to 450,000 deliveries, which would significantly increase above the previous record. Furthermore, Ives still has a $250 price objective for Tesla’s stock.
Remarkably, after the three Wall Street analysts’ notes, Tesla’s stock (TSLA) increased by 5% this morning.
