The stock price of Tesla Motors could accelerate more, and it could reach as much as $300 per share, according to a technical analyst.
During an interview with CNBC’s Trading Nation, Rich Ross, head of technical analysis at Evercore ISI said, “Tesla stock has held up like a rock against the backdrop of this uptick in macro volatility and I think it has what it takes to get all the way up to $300 a share.”
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Tesla outperformed the broader market
Tesla Motors traded between $181.40 and $291.42 per share over the past 52-weeks. The electric car manufacturer gained 21% of stock value year-to-date. The stock price of the company slightly up at $268.40 per share at the time of this writing, around 2:09 in the afternoon in New York.
The shares of Tesla Motors significantly outperformed the broader market. Tesla shares climbed 132% over the past two years. The S&P 500 and the NASDAQ were up 29% and 47%, respectively during the same period.
Ross explained, “The first thing you see when you break down the chart [of Tesla] is a big downtrend from last September to May of 2015.” He emphasized that the stock established a very nice base of support, and he sees a “breakout above the neckline, above that base.”
He added that the breakout established a new uptrend for Tesla shares, which are “almost in a straight line” upwards.
“Even as Greece fears and Puerto Rico has weighed on the broader market, Tesla has held up and is testing its old high for the year. I think that gets us all the way to $300, which is a new high for the stock.”
Ross emphasized that he would be a buyer of Tesla shares. He said Tesla is a “great name to own.” His price target for the stock is higher than the $270.32 average price target of 20 analysts covering Tesla based on the data compiled by FactSet. The analysts have an Overweight rating on the stock.
Credit Suisse analyst believes Tesla could hit $400
Separately, Credit Suisse analyst Dan Galves raised his price target for Tesla shares to $325, but he believed that the stock price of the electric car manufacturer could increase to as much as $400 per share. He reiterated his Outperform rating on the stock.