Tesla stock (TSLA) is showing slight signs of recovering after following rough two months that saw its price drop from $1045.45 per share in early April to $628.16 in late May. In June, the stock hovered above $700 and even hit $775.00 at one point. This upward trajectory might continue in the future for two particular reasons.
One of the reasons why TSLA stock took a hit was that the company struggled to meet its production quotas. This was particularly the case at the factory in Shanghai, which was closed for March and the better part of April. When it opened up again, it was nowhere near its previous level.
However, things are looking much brighter after the successful sale of 32,165 cars from the Shanghai factory in May. This included 22,340 exported vehicles. The production is now expected to be at full capacity moving forward, and June could see the automotive giant hitting its usual production of 60,000+ cars.
The second and maybe even bigger reason for optimism is the vote of confidence that Tesla recently received from experts. Patrick Hummel, Global Head of Autos Managing Director at UBS, recently upgraded TSLA from neutral to buy and set a target at $1,100.
According to Hummel, it is now “time to be bold” and jump on the upside that Tesla stock offers.