- Elon Musk says he won't sell any more of Tesla shares for at least two years.
- Canaccord Genuity analyst continues to see upside in Tesla shares to $275.
- Tesla shares are currently down nearly 70% versus the start of the year.
Tesla Inc was in focus after Elon Musk made yet another promise that he won’t trim his equity stake in the electric vehicles manufacturer any further for at least two years.
Tesla shares still continued to sell-off
The announcement did little to relieve the ongoing sell-off, though, since Musk made such a vow in April as well.
And then he went on to sell another $15 billion worth of Tesla shares between then and now. According to Howard Fischer – a former U.S. SEC attorney:
If Musk sells another billion or so dollars of shares in the near future, and that exerts downward price pressure on Tesla’s share price, investors might have decent claim for securities fraud.
For the year, Tesla shares are now down nearly 70%. Still, a Canaccord Genuity analyst says the EV company remains a great pick for 2023.
Tesla shares could benefit from several tailwinds
In a recent note, George Gianarikas talked of several tailwinds that could boost the stock price next year. To begin with, he expects a pick up in demand as China reopens.
We see this as a moment in time to properly discern signal from noise. With the current pressure and some patience – trust this holiday coal will turn into a long-term performance diamond.
Potential benefit from the “Inflation Reduction Act” was among other reasons cited for the constructive view. Production at the gigafactories in Berlin and Austin, the analyst added, seems also on track.
Nonetheless, Gianarikas lowered his price target on Tesla shares to $275 – but that still suggests the stock could more than double from here.