TSLA Stock Forecast: 13.10% Gain In 14 Days

TSLA Stock Forecast

Tesla Motors Inc. (TSLA) was a Tech Stock pick based on predictive algorithm recommended to I Know First subscribers on January 20th for the 14-days time horizon. Tesla had a signal of 84.95 and a predictability of 0.38. In accordance with the algorithm, the company reported short-term capital gains of 13.10%.

TSLA was part of the stock forecast that can be found in the “Top Tech Stocks” Package.

The full Top 10 Top Tech Stocks forecast includes a daily prediction for a total of 20 stocks with bullish and bearish signals:

  • Top ten stocks picks to long
  • Top ten stocks picks to short

TSLA Stock Forecast

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric vehicle powertrain components to other automotive manufacturers. It was founded in 2003 by a Serbian-American inventor after whom it is named Nikola Tesla, and is headquartered in Palo Alto, California.

This recent short term positive trend observed on Tesla’s Stock Price is mostly due new market analyst’s positive valuations of the company. Trip Chowdhry, an analyst at Global Equities Securities, has stated that  the new Tesla Motors Inc’s GigaFactory in Nevada, which was built to mass produce Lithium-Ion battery packs, is valued at $50 billion. He has defended it by stating that the GigaFactory will lead to the creation of a completely new energy storage industry. He further highlighted that similar scenarios have happened in the past as well, where initially investors did not realize the potential growth of an investment.

This optimistic valuation made the Global Equities Securities report leads to a target price of $385 on Tesla stock, while it is currently rated around $220.

Additionally, analysts at Morgan Stanley released a research report on February 3rd outlining their positive thesis on the electric automaker, and why its shares could spike higher in coming weeks. The investment bank maintained its Overweight rating and a $280 price target on Tesla stock.

The report mentioned that despite pressure from a sharp fall in oil prices and stronger US dollar, the company’s stock will be benefited from positive news surrounding the development of a more advanced battery prototype expected from the company, a rise in demand, as well as news from Tesla that  the Model X crossover  is on schedule for launch in the third quarter.

A complete analysis for the upcoming year perspective for Tesla can be read on the I Know First article, posted on Seeking Alpha.