Tesla Inc.’s stock on Monday rose 7%, ending a six-day losing streak, as Baird analyst Ben Kallo highlighted some positive developments ahead of the EV maker in the second half of the year, including the launch of the Cybertruck.
It was the stock’s TSLA, +7.33% largest one-day percentage gain since March 21, when it rose 7.8%. Tesla shares have lost 15% this month, and have been on a mostly downward trajectory after the company’s second-quarter earnings in mid-July.
Baird’s Kallo said price cuts and their impact on margins will drive the narrative for the electric-vehicle maker in the second half.
“Potential upcoming catalysts for the stock include Cybertruck launch, a wider-scale adoption of [Full Self Driving, Tesla’s suite of advanced driver assistance systems to navigate city streets], continued growth in the energy business, expanding into new markets, and a possible AI Day, among others,” the analyst wrote in a note to clients about Tesla and other companies.
Tesla last week announced cheaper versions of its luxury Model S sedans and Model X SUVs.
Baird set an outperform rating on the stock, the equivalent of buy, and a $300 price target, representing an upside of about 32% over Monday’s share price.
The stock has gained 75% in the year to date, while the S&P 500 SPX, +0.69% has gained around 14%.