Following the news of Tesla promising to release semi and cyber trucks in the coming year, the number of investors looking forward to a bullish year ahead continues to rise. Some experts believe that Tesla will soon grow more than twice its current price. One of these investors is Gary black. In today’s blog, we want to share some of the reasons he sees Tesla going beyond double in the next few months.
Gary black is the managing partner and co-founder of the future fund LLC. He has been bullish on Tesla, the leading company in the production of electric vehicles.
On account of the Elon musk twitter deal, Tesla went down, and that has caused controversy. But Black still believes the EV Company still has an edge for growth. He thinks the twitter matter will soon be resolved.
Reasons Tesla Stock Going Beyond Double in the Next Few Months
A bullish ground for Tesla is the potential upgrading of its debt rating. According to Black, some large funds and institutional investors are holding back from investing in Tesla because of the company’s non-investment grade debt ratings.
Even though the EV Company has delivered profit consistently for more than 24 months and recorded a very small debt, Tesla is still rated as a junk bond by the S&P global ratings and other rating companies.
Last October, the S&P upgraded Tesla to BB plus, a level just below investment grade. Experts see this as a green light, and since Tesla has a good balance sheet, the company is likely to be upgraded by the end of this year.
This might not necessarily be special to investors. However, it’s a big deal for institutional investors and mutual funds that do not buy stocks of companies without a blue-chip investment rating. They can invest when the company is upgraded to blue chip, and that might be another catalyst for Tesla stock.
Black also thinks Tesla’s new Giga factory in the United Kingdom and the United States is another reason for potential price growth. These represent pieces of an iceberg as the CEO announced the company’s mission to build more Giga factories in the coming years to step up production.
FSD beta release, cyber truck launch and other projects also count as a catalyst for Tesla stock. The second quarter of the 2022 conference with investors has a lot of talk around the 4680 cells. On this note, Tesla expressed their aim to begin the production of a 4680 battery cell, an update to the 2170 cell in the Texas Gigafactory and aim to exceed Kato’s weekly output before the end of 2022.
The company still noted that they are making progress with projects like Cybertruck, roadster update, AI, and a semi-truck, among others. Tesla CEO, Musk also stated his thought that the Cybertruck could be their best vehicle. He said this while announcing the potential for Tesla to begin manufacture of the truck in the coming year.
The brand name Tesla continues to make waves around the world through word of mouth as more people talk about the company and its controversial CEO, Elon musk.
In respect of autonomous driving, Tesla deployed the FSD beta to a limited number of customers. The beta version comes with a city street driving capacity, and Tesla set their sights on enhancing it week after week. Tesla’s projection is to prepare the full self-driving for rollout as 2022 goes to an end.
“From a technical standpoint, FSD beta should be ready for global rollout by the end of 2022”, says the CEO of the automobile company.
It’s worth mentioning that global rollout doesn’t mean FSD will be available throughout the stated period. This is due to difficulties in getting approval from the regulatory authorities of some countries. However, the optimism of the rollout will presumably reach North American customers.
Tesla’s report shows that the company delivered 343,000 vehicles out of the 365,000 vehicles it produced. The EV Company stated that transportation of vehicles at a reasonable cost becomes more challenging as its production capacity keeps increasing.
They also declared that they would release their earnings report for Q3 after the market closed on the 19th of October.
Gary black gave Tesla stock a 550-dollar price target over the next 6 to 12 months. In his recent tweet thread, he reiterates that he remains solid on this prediction.
Investors and enthusiasts are expecting a great third-quarter financial report. And even if it’s not as satisfactory as expected, many are still optimistic that the company will bring good news as we head into the future. According to Black, a good earnings report for Tesla in Q3 might hit positively on the stock and cause it to boom.
If you love this blog, please hit the like button and share the blog so others can see investment updates and future growth possibilities for Tesla. Remember to signup to our newsletter to enjoy endless investment, financial and lifestyle-improving facts and tips as we release them. You can check out also these related posts such as “Tesla Is Still Ahead Of Its Competitors“. What do you think of Tesla stock after the third-quarter earnings report? Let’s know in the comment section.
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