On solid May China Sales Data, UBS Upgrade, and Cathie Wood Dip-Buys, Tesla Stock Steak

On solid May China Sales Data, UBS Upgrade, and Cathie Wood Dip-Buys, Tesla Stock Steak ...

Updated at 1:43 pm EST

Get Tesla Inc. Reportshares moved strongly higher following data from China showing a solid drop in May sales and exports from the world''s largest automobile market, as well as a price target boost and upgrade from UBS.

Tesla sold 32,165 Chinese-made automobiles last month, according to the China Passenger Car Association (CPCA) Thursday, up from just 1,152 in April, the lowest in two years, when the company''s Shanghai gigafactory was closed for 22 days amid the city''s strict Covid lockdown.

The Shanghai business, which was reopened on April 19 and resumed exports on May 11, produced 33,544 automobiles in the month of May, a 212% increase from the previous month.

Tesla said earlier this spring that current quarter deliveries should be unchanged even if the first three months of the year were ended multi-weekally which included around half of the company''s cars last year amid China''s ''zero Covid'' crackdown. The full-year delivery estimate is 1.47 million units.

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Tesla shares were compared to 1.3 percent higher in early Thursday trading, putting their hands in the number of $734.66 each.

UBS boosted Tesla to ''buy'' from ''neutral,'' with a $1,100 discount, citing its record-breaking order book and the potential impact of new businesses in Austin and Berlin.

Tesla''s projected is "stronger than ever before," according to UBS analyst Pat Hummel, and while the Shanghai shutdown would result in a 12% increase in earnings in 2022, "we increase EPS for the next three years by up to 40%," according to Bloomberg. Most products and production facilities are currently available.

Cathie Wood, an investor for Ark Innovation ETF (ARKK) - Get ARK Innovation ETF Report, has added approximately 50,000 shares of Tesla over the past two weeks following Elon Musk''s long-distance pursuit of Twitter (TWTR) - Get Twitter Inc. Report.

Tesla''s stock has decreased by about 36.6% since Musk made his 9.1% share in Twitter on April 4 as investors have calculated the cost of both Musk''s margin loans, his sale of $9 billion in Tesla shares, and the billionaire''s growing leadership portfolio, which includes space exploration company SpaceX, The Boring Company, and neurotechnology specialists Neuralink Corp.

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