Tesla (TSLA +2.71%) shares have been on the rebound after a horrible start to the year. There has been a plethora of crosswinds for the company and its shares. One Wall Street analyst now thinks investors have a great opportunity for solid returns from recent levels.
Canaccord analyst George Gianarikas sees nearly 50% upside after shares of the electric vehicle (EV) leader have plunged over 30% so far this year. That's after the stock has bounced by more than 20% in the last week, too.
NASDAQ: TSLA
Key Data Points
The Elon Musk factor
The CEO has become somewhat of a lightning rod for Tesla investors. Elon Musk's relationship with President Trump helped boost investor confidence late last year as optimism grew that Tesla would benefit from the new administration. That sentiment has reversed as the new year began, however. Reports indicate Tesla sales are slumping, and some investors believe it's due to a reaction to Musk's foray into politics.
Canaccord's Gianarikas performed his own survey, though, and the results painted a brighter picture. A check of over 1,000 consumers showed that most respondents were actually more likely to buy a Tesla versus one year ago. The survey results also showed over 20% were less likely, though, due to Musk's politics, reports Barron's.
So while controversy does exist and Tesla's brand may be impacted, Gianarikas sees the glass half full. Fewer consumers seem to be swayed by politics than many believe. Key data is coming soon.
Tesla will release its first-quarter sales results next week, likely on April 2. That's what investors need to monitor. It won't provide financial details, but quarterly production and deliveries will tell an important part of the Tesla story. Shares may bounce if the news is good, but investors should be prepared for volatility.
Tesla shares could well head lower before potentially moving toward Gianarikas' $404 price target. Volatility is the one thing that should be expected.
