Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!
Morgan Stanley has bullish forecasts on Tesla
Information is not investment advice
Morgan Stanley, a huge investment bank, has warned investors about a “risk” not having Tesla stock. It means that those people who don’t have Tesla shares will regret it as Musk’s company will continue increasing its value.
Why is Morgan Stanley so sure about Tesla’s growth?
The key reason is Biden’s infrastructure plan, which is positive for Tesla. The US President intends to fight climate change and make the USA carbon-free by 2050. He will spend $174 billion to develop the US electric-vehicle ecosystem, where Tesla is the top performer.
“Auto investors face greater risk not owning Tesla shares in their portfolio than owning Tesla shares in their portfolio.”
However, Morgan Stanley cautioned that Tesla’s way up won’t be easy and fast. Indeed, this year the carmaker is down about 5%, which is not so bad actually. It can be viewed as a great opportunity for investors to buy Tesla at a lower price. In comparison, Tesla rose 743% last year. So, there is a high chance Tesla will catch up. By the way, last week, Musk’s company has published better-than-expected car deliveries even despite the global chip shortage.
Morgan Stanley set a price target for Tesla at $880. According to Bloomberg, the average analysts’ target is $651, with 17 buy recommendations, 13 holds, and 12 sells.
Tesla has formed the ascending triangle pattern. The ascending triangle pattern shows that bulls are getting stronger. As a result, its slope goes up. If the price manages to break the high of April 5 at $708.00, the way up further to the next round number of $750.00 will be open. In the opposite scenario, the move below the low of March 31 at $640.00 will drive Tesla down to the lower trend line at $600.00.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded FBS Trader app or Metatrader 5. FBS allows you to trade stocks only through this software.
- Open an account in FBS Trader or the MT5 account in your personal area.
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.
Last week brought a selloff in markets. Some assets reached the most crucial support levels and are likely to reverse in a short term. Be ahead of trends and make the most out of this week!
Historically, the stability of the franc is caused by the solid Swiss economy and a highly developed banking system…
A four-day lockdown turned out to be two months of complete isolation. Factories are frozen, supply chains are under heavy pressure, and the future is gloomy. Find out how to trade in times of crisis in this article!