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If you want to buy Tesla stock, ‘now’s the time,’ Evercore says

If you want to buy Tesla stock, ‘now’s the time,’ Evercore says

If you want to buy Tesla stock, ‘now’s the time,’ Evercore says
January 10
16:12 2018
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Tesla shares are seeing a strong start to the year, and some market watchers expect further gains.

The stock fell in Tuesday trading, just one session after surging over 6 percent — its best day since September. Although the stock is still off 14 percent from its all-time high, now could be the prime time to buy.

“If you own it, you hold it. If you’re thinking about buying it, now’s the time,” Rich Ross, head of technical analysis at Evercore ISI, said Monday on CNBC’s “Trading Nation.”

According to Ross, the stock has managed to hold what he calls a critical level of support at $300 per share, and absent a break below that level, the stock may shoot back up to its highs around $390 to $400 per share.

“When you zoom out and look longer term, this is where you can see the potential for that upside. Tesla loves the counter-trend rally. When the stock pulls back as it has from those highs last May, you’re setting yourself up for a slingshot off of that critical support. You see that prior resistance, which once again becomes support at $290, $300, you got the 50-week moving average. … So I think Tesla is a buy here,” Ross said, examining a chart of Tesla stock back to 2013.

Considering the stock’s fundamental backdrop, however, others are far less optimistic.

Kim Forrest, senior portfolio manager with Fort Pitt Capital Group, is concerned with the company’s execution on deliveries. The company last week announced fourth-quarter deliveries numbers that fell short of expectations. As a result, it pushed back production targets on its forthcoming Model 3 sedan.

“No doubt they make some compelling cars and they have some great ideas, but as we’re seeing once again with the Model 3, they can’t really get things out on time, and they’re burning cash like mad. I would say stay far away from this, but if you want to buy Tesla, buy a car, and enjoy the ride,” Forrest said Monday on “Trading Nation.”

The stock traded about 1 percent lower in Wednesday’s premarket.



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