Tesla Inc (NASDAQ: TSLA) has been on an interesting ride this year, with a remarkable 35% increase this month alone. However, after some selling off at $276 per share, the stock is now only up 18% for June.
Despite the thrilling 102% increase in value this year, Goldman Sachs Group Inc (NYSE: GS) recently downgraded Tesla's shares. Investors holding these shares since the beginning of the year have certainly experienced quite the high-octane thrill.
Although the shares have recently experienced increased buying activity, this surge is incomparable to the phenomenal 1325% rally from January 2020 to November 2021. This up-and-down journey of Tesla's performance has been anything but predictable.
Despite the volatility, Tesla's shares continue to attract attention from investors with its impressive track record of performance.
After peaking at $276 on June 21st, there was a wave of selling, leading to an 11% dip in price. However, looking at the bigger picture, this is only a minor correction, and a bullish continuation is expected to follow.
The 20 simple moving average, currently located just below at $237, should serve as crucial support to help the price recover. Despite the correction phase, the outlook remains promising.
With an all-time high of $414, there is still a 72% climb to surpass this record. For investors willing to weather the journey, this could lead to significant rewards should price reach that level and move beyond it.
Goldman Sachs remains optimistic about Tesla's future growth and competition, despite their recent downgrade. In fact, the financial giant has raised the company's price target to $248 per share from $185, demonstrating a strong belief in Tesla's potential to drive innovation and market growth in the electric vehicle industry.
This showcases their unwavering faith in Tesla's ability to continue leading the way in this rapidly expanding industry.
Investing in the stock market can be a challenging and volatile endeavor, with many factors impacting the rise and fall of stock prices.
Tesla's unique position as a trailblazer in the electric vehicle industry, combined with their innovative leadership, presents an alluring opportunity for investors.
Nonetheless, recent downgrades serve as a reminder that identifying crucial investment strategies is essential when considering any company shares.
After the closing bell on Monday, June 26, the stock closed at $241.05, trading down by 5.98%.