Tesla Shares Jump 12% in Single Day as Traders Bet on Post Coronavirus Scenario
Shares of Tesla leaped 12% Tuesday after Credit Suisse upgraded its ranking on the electric car manufacturer, and as Wall Street rallied on optimism, the coronavirus pandemic was reaching a plateau.
The stock has leaped 28% in the last two days as investors look past disruptions brought on by the pandemic, which has forced Tesla to shut its California manufacturing unit, furlough workers, and lower salaries.
Credit Suisse moved its rating on Tesla to “neutral” from “underperform,” saying short-term adjustments in demand related to the pandemic will distract conventional auto manufacturers like General Motors and Ford Motor of their gradual transition toward electrical automobiles.
“Coronavirus crisis will make it more difficult for legacy auto manufacturers to balance the long-term shift (to electric automobiles) in the face of near-term cycle disruption,” Credit Suisse analyst Dan Levy mentioned in a research observe.
Levy raised his target value by $165 to $580, in comparison with Tesla’s price of $733 on Tuesday.
Tesla’s shares have doubled from its March low and still stays down 20% from its record high close in February before fears concerning the coronavirus’ impact on the global economy sparked a deep stock market sell-off.
The S&P 500 rallied 2.6% Tuesday as some U.S. states developed plans to reopen their businesses, and the inventory benchmark stays down nearly 16% from its February 19 record high.