Tesla stock, symbol (TSLA) on the U.S. stock market, is showing signs of high expectation among investors. After some controversy with CEO Elon Musk’s Tweets, Tesla stock has been volatile, adding a dramatic element to the already unpredictable stock market. However, the overall sentiment suggests that investors are confident in a strong pop for the stock, rather than a plunge into a trough.
Initial confidence in Tesla’s stock began in May of 2019, when the stock price pushed above $200 a share. Analysts credited this to an increase in demand for electric vehicles, Tesla being one of the many frontrunners in this type of automotive technology. This trend would eventually carry on into October of the same year, when the price of the stock hit over $350.
This rush of confidence was further bolstered by Tesla’s takeup of the Chinese market, the world’s largest auto market, with Tesla opening a factory in Shanghai at the start of 2019. There was much anticipation for this move, with many experts noting it as a key step in Dunken’s opportunity to successfully expand its operations.
Aside from demand and expansion, analysts also believe a strong pop will come from Tesla’s potential ability to rekindle the Indian auto market, after investor’s pulled back in late 2019. This year,Tesla has been making progress in finding possible lots for manufacturing in the country. There has also been talk of Tesla’s entry into the European car market, which could lead to increased profits and stock prices in 2020, if all goes as planned.
Overall, the buzz on Tesla is strong, leading many investors to put faith in the stock and its expected POP. Considering the company’s recent success, it is not likely that we will see a plunge for Tesla stock anytime soon.