Tesla Stock Is Trading Higher Tuesday: What's Going On?

Tesla Inc TSLA shares are trading higher Tuesday. New reports suggest Italy has approached the EV maker about electric truck production.

What Happened: Multiple reports are highlighting new reporting from Italian news outlet Il Sole 24 Ore, suggesting Italy’s Industry Ministry officials have reached out to Tesla in regards to potentially manufacturing electric trucks in the country.

The report indicates that Italy has been in talks with Tesla and three China-based EV manufacturers since last year, but the discussions have reportedly ramped up in recent weeks.

Reuters reported last month that Italy had been in talks with Tesla and three Chinese carmakers about ramping up EV manufacturing in the country. Italy is reportedly targeting annual production of at least 1.3 million vehicles, including one million passenger cars and 300,000 vans.

What Else Is Going On: Bernstein analyst Toni Sacconaghi on Tuesday became the latest analyst to cut estimates for Tesla. The Bernstein analyst maintained Tesla with an Underperform rating and lowered the price target from $150 to $120.

The price target cut comes a day after Mizuho analyst Vijay Rakesh downgraded Tesla and other EV makers, citing weak demand and rising inventories.

"We see TSLA maintaining strong market share in the global EV space, but we see moderating growth and limited margin leverage at current interest rate levels as headwinds," Rakesh said.

See Also: ‘Consumers Are Not Going To Hybrids’: Ross Gerber Believes Tesla’s ‘Phenomenally Performing’ Batteries Make EVs The Top Choice

TSLA Stock Prediction 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Tesla's revenue has grown at an average rate of 42.28% annually over the past five years. The average one-year price target from analysts is $246.18, representing an expected 38.37% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Tesla have seen an annualized return of -5.76%, underperforming the S&P 500 index by 15.26%. This compares to 3.95% growth in the overall Consumer Discretionary sector. Tesla has a beta of 0.62.

TSLA Price Action: Tesla shares were up 3.11% at $177.99 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Tesla.