Published on 01/06/2020 8:57 AM
What to do with the securities of Tesla, HEXO and Bank of America? Here are some recommendations that could influence prices in the near future. Note: the author may have a different opinion from that of the analysts.
Tesla (TSLA, US $ 443.01): Strong demand amid rising oil prices
The electric car manufacturer announced Friday that it had delivered 368,000 vehicles in 2019, more than what it had expected at the start of the year.
In the fourth quarter, deliveries totaled 92,550 Model 3s and 19,450 Model Ss and Xs, up 50% from the previous year, notes Jed Dorsheimer, analyst at Canaccord Genuity.
The firm also provided an update on its activities in Shanghai, announcing the assembly of more than 1,000 vehicles ready for sale while signaling that its capacity has now reached more than 3,000 units. According to the analyst, this is a remarkable result given that this factory did not even exist less than a year ago.
These results clearly indicate that demand for Tesla’s electric vehicles remains strong. The company is therefore in a good position to start the year 2020 since it continues to follow its positive momentum in all its business segments, believes the analyst.
He acknowledges that investor attention in the coming quarters will continue to focus on profits and profit margins. But he says he’s very encouraged by the results of the past year which show that Tesla is the clear leader in the electric vehicle industry.
The analyst also believes that the recent escalation of geopolitical tensions in the Middle East which is forcing the price of oil upwards is creating a favorable tailwind for Tesla’s stock. It maintains its buy recommendation and its target price of US $ 515.