Tesla Stock Is Up 103% YTD After Recent Pullback. What’s Next?

The Tesla Inc (NASDAQ: TSLA) stock price has risen 103.43% this year amid a broad US economic recovery and the stock market rebound. However, the latest gains in Tesla’s stock have been driven by recent events where EV manufacturers have embraced its EV charging network.

Tesla had spent billions building out its network of EV chargers that were being used by Tesla owners but faced significant resistance from other EV manufacturers and third-party EV charging infrastructure providers who had a different charging network.

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Recently, two leading vehicle manufacturers, Ford and General Electric, adopted Tesla’s North American Charging Standard (NACS) connector, making other manufacturers adopt the same EV charging standard. 

Yesterday, Goldman Sachs analyst Mark Delaney downgraded Tesla to Neutral from Buy with a price target of $248, up from $185. The rating was informed by the rally witnessed in the first half of the year in Tesla stock. 

The analyst also noted that Tesla’s growth potential and competitive positioning critically impacted his long-term view of the company. The analyst noted that the markets had already given the company much credit for its longer-term opportunities. 

However, Goldman Sachs was worried about the challenging pricing environment for new vehicles that will continue weighing on Tesla’s gross margins throughout the year. 

Earlier today, Baird analyst Ben Kallo did not change the firm’s Outperform rating for Tesla as he continues to view the stock as a core holding and likes it as a ‘Best Pick for the year’. The firm tells investors in a research note that it is cautious about the print and sentiment headed into the quarter being negative. 

Bernstein analyst Toni Sacconaghi notes that recently, Tesla’s (TSLA) North American Charging Standard, or NACS, has been adopted by competitors like Ford (F), GM (GM) and Rivian (RIVN) as well as third-party networks. 

The charging standard is on track to become the de facto standard in the US and could significantly impact Tesla’s long-term revenues. Over the long term, Bernstein estimates that supercharging could be a $12B revenue opportunity for Tesla in 2030, albeit on low margins. 

*This is not investment advice. 

Tesla stock price. 

The Tesla stock price has risen 116.59% this year, driven by positive investor sentiment and price cuts.