As the price of Tesla (NASDAQ: TSLA) surpasses the $700 mark after moving up 6.6% by yesterday’s closing bell, CNBC host Jim ActionAlertSPLUS portfolio manager Jim Cramer believes it’s a “great time to buy” the carmaker’s stock.
In a discussion on his website TheStreet, Cramer revealed he sees Tesla as a “tech company on wheels” that has taken a hit from the recent market downturn, and is a good buy ahead of its earnings report, expected on April 29 after the closing bell.
Per Cramer, investors should bet on TSLA stock instead of that of other car companies, as Tesla’s popularity helps it widen it reach.
I would put that higher. If you are younger, you should bet on the only car company that's got a level of popularity that doesn't need any advertising. I always say it is a tech company on wheels.
On its earnings report, Tesla is expected to reveal a non-GAAP loss of 25 cents per share on revenue of $6.16 billion. Analysts are seemingly divided on its long-term prospects, as InvestorPlace analyst Luke Lango argued TSLA stock could hit $2,000 in the future as the electric vehicle market grows, while Gordon Johnson, co-founder and CEO of research boutique GLJ Research, revealed a $70 price target believing its overvalued.
TSLA stock has caught Wall Street’s attention so far this year as it managed to gain in the first quarter, despite the coronavirus pandemic’s effects on the economy. Tesla stock is now trading at $732 after starting the year at little over $430 and hitting a new all-time high of $917 ahead of the downturn.
In its earnings call, investors will be on the lookout for details on Tesla’s ability to achieve its full year delivery target of 500,000 vehicles, which according to Wedbush analyst Dan Ives is a “virtual impossibility.”
Featured image via Pixabay.