Tesla shares (NASDAQ:TSLA) traded up 4% on Wednesday amidst Elon Musk’s recent tweets that hinted at “some Tesla news” coming on Thursday. As the California electric carmaker appears to shrug off the SEC’s latest claim against Elon Musk, a number of Wall Street analysts have also maintained their optimistic stance on the company.
Early Wednesday, Elon Musk posted a series of cryptic tweets, starting with “Thursday 2 pm,” followed by “California” and “some Tesla news.” These tweets immediately fueled speculations among the Tesla community, considering that Musk did something very similar in 2017. During that time, Musk posted an equally cryptic “News on Sunday” tweet to his millions of followers, which proved to be the date when the company released more details about the Model 3’s launch.
With this in mind, the Tesla community is currently abuzz with speculations, especially considering that Tesla has several upcoming big projects. Among these are vehicles like the Model Y all-electric compact SUV and the Tesla Pickup truck, upgrades such as Supercharger V3, and energy products such as the rumored Megapack, and the development of Hardware 3 for the company’s Full Self-Driving initiatives.
Apart from Elon Musk’s recent posts, TSLA stock also appears to be bolstered by some support from Wall Street. Despite headwinds resulting from Musk’s recent issues with the SEC, some analysts have nonetheless stayed optimistic about the electric car maker. Wedbush analyst Daniel Ives, for one, admitted that while “another boxing match with the SEC is the last thing investors wanted to see,” he still sees a 30% upside to TSLA stock. Ives maintained his Outperform rating on Tesla and his price target of $390.
Macquarie analysts also remained bullish on Tesla stock, stating that the Model 3 appears to be performing well in Europe and China. “Volatility from non-fundamental issues continues to frustrate the stock, but that has improved from last year and demand from Europe, and China can carry forecasts for at least the next two quarters (barring logistics issues),” the analysts noted. In a blog post, Gene Munster and Doug Clinton of Loup Ventures further admitted that ultimately, “a healthy disregard for the rules is what makes Elon, Elon,” and that “Musk’s unwillingness to follow the rules is part of what you have to be willing to accept as an investor in Tesla.”
As of writing, Tesla shares are trading +5.19% at $313.33 per share.
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Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.