There is no denying that the US stock market has struggled this year. However, signs of life are emerging. Certainly, Tesla (TSLA), a low-performing face, is quietly riding his five-day winning streak, as experts say a trip to $300 could come next.
The company was red for most of Monday. But it managed to turn things around and benefited the closing bell. It continues to win a streak where many believe that changes in property could be kept for the company.
Tesla continues a modest winning streak as it remains a high-risk, highly rewarded play
Since the start of the new year, the US stock market has become increasingly unstable. Macroeconomic pressures and geopolitical uncertainty have only gained momentum for some of the nation’s largest companies. Furthermore, economic policy has hampered things, and President Donald Trump’s first 100 days are the worst on Wall Street since President Ford.
It has not driven away many experts of optimism. Plus, there is a reason to be optimistic as some of the poorest performers show signs of life. Perhaps the chief among them is Tesla (TSLA), quietly riding a five-day victory with an eye on the $300 level.
What’s pretty surprising is that those five consecutive days of profit came after the company’s frightening revenue data. The company’s net profits have plummeted 81% over a year ago, with earnings per share and net profit margins down 65% and 61% respectively.
Still, the stock price has risen 18% over the course of its recent winning streak, at the $282 level. The big catalyst was the announcement of Elon Musk’s return. In fact, the CEO has announced that he will step back from his position as head of the US President’s Trump Committee. In turn, he will spend more time leading Tesla.
It could play an important role in defining where you will go next. The stock holds a median price target of $307, up 9% from its current position. However, that high-risk, high-reward sentiment comes from extremes. The bull case projection is $470, representing 67% upside. Meanwhile, the bear case fell to $115, indicating a downside risk of 59% of the stock.
