Tesla Motors stock is hovering around its 52-week low this week, giving investors a lucrative opportunity to initiate a position in the stock. The majority of analysts see it as a significant break and are suggesting that investors buy Tesla shares at this price point, says a report from The Street.

Tesla Motors Inc (TSLA) Around 52-Week Low; Is It A Buying Signal?

China not a concern?

Dan Galves, an analyst with Credit Suisse and one of the strongest supporters of Tesla Motors Inc (NASDAQ:TSLA), expects shares to hit $290. Galves believes that the demand for Tesla’s cars is strong and that backlog has surged over the past four months “despite the fact that Tesla produced and delivered more cars in the fourth quarter than they have in their history.”

Galves, however, is not concerned about the Nevada gigafactory or Tesla’s China market. These two have been concerning investors of late. For instance, shares dropped on Monday following the news of layoffs in China, says the report.

Sales were not in line with expectations in the most recently quarterly earnings report, reflecting problems in the Chinese market. The EV manufacturer aimed at selling 5,000 units last year, and according to JL Warren Capital, a research firm, the company sold around 2,500 cars there, says the report. Galves noted that China is a new market for Tesla Motors Inc (NASDAQ:TSLA) and contributes only 8% to sales, but there are ample signs suggesting demand for the electric cars will surge in the region.

The country is determined to set up charging stations. Also the Palo Alto-based manufacturer is planning to launch its new model next month, which is expected to have greater appeal than the current Model S, says the report.

Tesla (TSLA) stock down, but still impressive

Even though Tesla Motors Inc (NASDAQ:TSLA) shares are nearing their 52-week low, the stock is still up 400% over the past couple of years. Sales of the car were below expectations last year, but they are still up 50% from 2013 to 32,000 and are estimated to surge more than 50% this year to 55,000. By 2020, the company expects to sell 500,000 backed by the gigafactory and the Model 3.

Among 13 analysts, eight rate Tesla Motors a Buy, while five of them are convinced that the stock is a Strong Buy, according to Zacks Investment Research. On Wednesday, Tesla stock closed up by 1.8% at $193.74, while year to date, shares are down by almost 13%.