Massive buying opportunity for Tesla and electric vehicle stocks – broker

Now is not the time for Tesla Inc’s (LON:TSLA) investors to panic, according to stockbroker Wedbush, which in a note has described the recent stock sell-off as “just part of the multi-year ride higher.”

Wedbush published bullish commentary, but kept a ‘neural’ rating, for Tesla ahead of highly anticipated vehicle delivery numbers which the broker said are due in the coming days.

“Clearly for the stock, the bloom has come off the rose in the near-term as the Street rapidly sheds growth/momentum names across the tech and EV landscape with Tesla the poster child for this white knuckle sell off over the past few months,” Wedbush analyst Daniel Ives said in a note.

Ives, meanwhile, added: “the bloom has come off the rose in the near-term as the Street rapidly sheds growth/momentum names across the tech and EV landscape with Tesla the poster child for this white knuckle sell off over the past few months.”

The analyst highlighted that the EV market is forecast to be worth US$5 trillion over the coming decade and the company’s currently involved in EVs are poised to be the major winners.

Wedbush estimates Tesla’s first quarter deliveries at 174,000 up from a prior estimate of 145,000 units, and, it models full year deliveries of 830,000 units for 2021 which the broker says would generate US$42.7bn of delivery revenue.

The broker’s ‘neutral’ rating comes with a US$950 price target, suggesting some 50% upside to the current market price of US$635.

Story by ProactiveInvestors