Why This Tesla Analyst Expects Stock To Spike Over Next 3 Sessions

Tesla, Inc. TSLA shares are trading off the year's high of $217.65 reached in mid-February as investors fret over a demand slowdown and hit to margins from recent aggressive pricing actions.

The stock could be headed higher over the next few sessions and also in the near term, according to Future Fund's Gary Black.

Tesla has scheduled its annual shareholders' meeting on Tuesday. "CEOs often give goodies to shareholders before annual meetings to ensure shareholders are happy going into the annual event," Black said.

The fund manager also raised the possibility of more upside over time as the company stops cutting Model-Y prices. He clarified that discounts on select cars in inventory do not count as price cuts.

Potential updates on Cybertruck, the timing of the $25,000 compact car, Model-3 Highland, pricing or advertising strategy and megapack expansion at the shareholder meeting could move the stock, Black said.

Incidentally, Tesla continued to reverse its recent price cuts. Late Thursday, the company updated the pricing of its Model S, X and Y vehicles, raising prices of the former two by $1,000 increase and the latter by $250.

Elon Musk’s announcement that a new CEO has been identified by Twitter should also be positive for Tesla shares as the investors were uncomfortable with the social media platform occupying much of the billionaire’s time. They were lamenting the fact that Musk was not available for Tesla on a full-time basis.

Tesla closed Thursday's session 2.10% higher at $172.08, according to Benzinga Pro data.

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