Tesla (NASDAQ:TSLA) extended its impressive rally, rising approximately 1.5% yesterday, propelling the stock to reach a new peak of $230.83 per share in 2023 so far. Wondering what spurred this positive development? On Wednesday, the U.S. Environmental Protection Agency officially affirmed that all variants of Tesla’s Model 3 sedans are eligible for the full federal EV tax credit of $7,500. Notably, TSLA stock has soared by an astonishing 107.7% year-to-date.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The recent eligibility for 100% tax credits is a result of the new Inflation Reduction Act that came into effect earlier this year. Previously, only one version of the Model 3 qualified for the full tax credit, while the other two models received only 50% of the credits.
The fact that Tesla now qualifies for full tax credits is significant, as it is expected to drive further growth in the company’s market share within the electric vehicle market. With this eligibility, Tesla gains the advantage of being able to price its vehicles more competitively compared to its peers. This competitive pricing is likely to attract more customers and contribute to Tesla’s market expansion.
TSLA’s Recent Developments
In another major positive update, TSLA seems to be performing impressively in the United Kingdom. As per data from the Society of Motor Manufacturers and Traders, new car registrations in May increased by a humongous 13,656% year-over-year to 3,439 vehicles. Furthermore, Tesla’s EV sales in China went up by 142% in May to 77,695 vehicles, according to data from the China Passenger Car Association (CPCA).
In addition, Panasonic (PCRFF) has announced its intention to establish a new battery cell production line at the Tesla Gigafactory in Nevada. This strategic move aims to boost production by approximately 10% by March 2026.
Is TSLA Stock a Buy or Hold?
Out of the 17 top analysts who recently rated TSLA stock, nine assigned a Buy rating, seven suggested a Hold, and one rated it a Sell. Overall, top analysts are cautiously optimistic about Tesla with a Moderate Buy consensus rating.
Though the consensus 12-month price target of all top analysts of $195.20 implies a downside potential of 13% at present, several analysts have yet to update their price targets following the recent winning streaks.
In another positive, TSLA stock carries a Smart Score of eight. This indicates that the stock has the potential to outperform the market averages. Also, hedge funds and corporate insiders are bullish on the stock.
