Tesla roars into 2022 after December drop
Record vehicle deliveries push Tesla’s stock price close to its all-time highs.
Tesla (TSLA) started the year with a bang, gaining 13% on the first trading day of the year.
The reason? Tesla delivered 308,600 vehicles in the final quarter of 2021, beating analyst expectations of 267,000 vehicles for the quarter.
Elon Musk expects to increase annual production to 20 million vehicles in the next nine years, and it seems investors are buying it.
After giving up some ground midweek, Tesla sits at about $1,135 today. That’s a striking bounce from a low below $900 in December, when CEO Elon Musk made some sales and hurt the stock.
The buy-on-the-tip opportunity from that pullback is quickly disappearing.
Tesla stock price is close to its 52-week high
Even though the price moved higher at the start of January 2022, it’s still slightly below the 52-week high of $1,208. This marks the next price resistance zone. A break above it could mean more gains for the stock.
TipRanks analysts have a moderate buy rating for the stock with an average price target of $1,048 in the next twelve months. This means not everyone believes Tesla is worth more than $1,200 at this point.
Last month wasn’t kind to Tesla’s stock price
In December 2021, the share price dropped to $900, the lowest price point after hitting the $1,208 mark. The drop was mostly driven by Elon Musk, who sold 13.5 million shares to book some profits and pay the taxes.
In a recent Twitter poll, he asked the community whether he should sell 10% of his shares. 57% out of 3.5 million voted in favor.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
However, Elon Musk needs to sell another 3.5 million shares to reach the 10% goal. If he does, the stock price could slide again and offer a buying opportunity for those who want to get in.
At the time of publication, Kliment Dukovski didn’t own Tesla shares