(MENAFN- Baystreet.ca)
Why Tesla is Due to Re-Test $1000 Highs Again
Loyal shareholders of Tesla (TSLA) may overlook CEO Elon Musk's plans to buy Twitter (TWTR). They
might also ignore his rant about factories burning billions of dollars.
The CEO is preparing investors for a weak quarter. Fortunately, nearly all of Tesla's problems are
temporary. China shut down Shanghai for over two months. During that time, Tesla managed to
continue some activities.
In the months ahead, the supply disruption will limit the availability of key components. The most
important component in electric vehicle batteries. Suppliers may favor selling EV batteries to Tesla first.
As output recovers, investors will gain greater confidence in TSLA stock.
TSLA shares managed to rebound above the $700 reached in May 2022. If the stock finds support at the
$705 - $800 level, it could run back to $1000.
Competition
Investors are not worried about Tesla's competition. In the truck EV space, Tesla does not have a model
to compete with Rivian (RIVN) and Ford (F). It might announce updates on the Cybertruck. That would
spark a rally in Tesla stock.
Lucid's (LCID) high-end luxury EV does not overlap with Tesla's market share. The Lucid model is more
expensive. It targets a different client base.
Fisker (FSR) is too small to compete with Tesla.
Keep watching Tesla. The stock rarely stays at low prices for that long.
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