Tesla (TSLA) stock rose 1.75% on Friday amid a volatile week for the electric car giant and the broader market.
Tesla shares closed more than 6% lower on Thursday amid an all-out market sell-off as technology shares and momentum were hurt by the possibility of the Federal Reserve raising interest rates starting in March.
Questions about the schedule for Tesla’s much-anticipated Cybertruck began emerging this week. Limited production of the car is now expected to start in the first quarter of 2023, according to a Reuters report on Thursday, after production was originally scheduled to start late this year. The delay is due to the changing features and functionality of Cybertruck amid the upcoming competition.
Ford (F) recently announced that it will nearly double its production capacity to meet demand for its upcoming F-150 Lightning electric pickup truck. Lightning is seen as a potential competitor to Cybertruck.
Cryptocurrency is also a small factor for Tesla: CEO Elon Musk tweeted that the company is now accepting Dogecoin (DOGE) payments for some merchandise. This sent the meme token price up 18% to around $0.20.
Musk has been vocal about cryptocurrencies in the past: in December, he announced that the company would begin offering some purchasable merchandise with Doge. The coin was up 20% on that day as well.
Analysts have been increasingly upbeat about the electric car giant, even as the Federal Reserve signals a cut in its balance sheet and a possible rate hike this year. Higher interest rates generally tend to affect valuations of developing stocks.
Dan Ives of Wedbush predicts that Tesla will reach $2 trillion in market value in about 18 months. The company’s valuation first hit $1 trillion in October of last year.
“Ford will succeed in GM, Lucid, Volkswagen in Europe and of course, NIO in China, but overall in the land of electric cars is the world of Tesla,” Ives told Yahoo Finance this week.
On Tuesday, Goldman Sachs analyst Mark Delaney raised his 12-month price target on Tesla to $1,200 and maintained the buy rating, citing “strong Q4-21 deliveries.” The stock is currently trading around $1,030 per share.
“We expect Tesla to expand profit margins in the medium term as it increases its critical Model Y product as well as new plants in Berlin, Germany, Austin, and Texas, and in the longer term as it increases its mix of software revenue,” Delaney wrote. In a note to investors.
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