Tesla Inc (NASDAQ:TSLA) shares have pulled back considerably from their recent highs, but one Wall Street analyst isn’t worried about the company’s longer-term prospects.
Rich Ross of Evercore ISI said this week that despite short-term downturn, there’s reason to believe the stock could indeed resume is massive yearly rally. CNBC has more details:
Despite the stock’s recent weakness, down 22 percent from its September high, Ross stressed the importance of looking at a longer-term chart in order to get a better grasp of its performance.
“The stock is up against the ropes, and we’ve pulled back to critical long-term support at the high end of this very well-defined multiyear base of support [around the $280 level],” he said.
If Tesla can hold above important technical support at its 50-week moving average, says Ross, it would likely indicate another leg higher is on the way. TSLA’s 50W SMA currently sits around the $274 mark.
The company has a big event planned for today where it will finally unveil its electric semi truck. That could provide a catalyst for share price appreciation in the short term as well.
Tesla Inc shares rose to $314.50, up $3.20 (+1.03%), in premarket trading Thursday. Year-to-date, TSLA has gained 45.68%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.