By CCN Markets: Tesla’s stock is making a fast and furious comeback in June. That’s good news for shareholders after TSLA spent the first half of 2019 suffering crippling losses. Now the famed electric automaker’s stock is on the rebound.
The stock is up 22% for the month.
Does Wall Street Have Tesla’s Stock All Wrong?
Tesla’s massive losses have led investors to fear an impending cash crunch. The company had to widen its junk bond spread to record levels this spring.
With fears mounting over Tesla’s distressed credit history and the looming threat of a trade war with China, traders slammed the brakes on Tesla’s stock.
The price declined 32% this year prior to June’s rebound.
But some Wall Street analysts are saying the sell-off has gone too far. They take Tesla’s problems seriously but also expect to see growth ahead because of opportunities.
In a Wednesday note to investors, Morgan Stanley analyst Adam Jonas said:
“We continue to believe Tesla is fundamentally overvalued but potentially strategically undervalued.”
The glass-half-full scenario is because Tesla is a global leader in autonomous vehicle technology.
Self-Driving Cars, a $2 Trillion Opportunity
According to Tasha Keeney, an analyst at Ark Invest who specializes in industrial innovation, the self-driving car market should be valued by equities markets at $2 trillion:
“We think the autonomous driving market is going to be a huge opportunity.