Tesla TSLA Stock Can Rocket Higher in 2022 as Bear Case Fading, Says Mizuho Securities

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Tesla (NASDAQ: TSLA) stock can rocket higher in 2022 as the bear case fades, says Mizuho Securities. Its target price is $1,300 per share, as the company is “executing well” in a turbulent market.

Tesla received a bullish outlook from Mizuho Securities analyst Vijay Rakesh. He reaffirmed his BUY recommendation, citing the company's continued sales and production success. Despite turbulent market conditions, the analyst set a price target for TSLA stock at $1,300, one of the highest set by Wall Street in recent months.

Of particular note is Rakesh highlighting Tesla's upside potential. While some analysts lowered their share price target due to a temporary shutdown of production in Q2 2022 at Giga Shanghai, Mizuho Securities is looking at the company's development more globally. During a recent interview with CNBC, Rakesh stressed that despite China's manufacturing problems, Tesla has done a good job, which should convince investors of its upside potential.

“We believe TSLA has potentially ~1.4M of its 1.5M C22E target units that could be produced at just Fremont and primarily Shanghai as the major hub,” the analyst said in a note to clients. He acknowledged that a ramp-up at Giga Shanghai is likely to create difficulties in Q2, though he sees no reason to bet against the stock.

“We believe monthly April deliveries were ~40k, down ~22% from Jan's ~51k, therefore the JunQ top line could be down q/q. That said, we believe a potentially stronger SepQ/DecQ rebound is possible with improved supply chains and Berlin ramping.”

© 2022, Eva Fox | Tesmanian. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.