The coronavirus pandemic and the associated lockdowns have resulted in considerable damage to a wide range of industries, and the automobile industry is one of those. Car sales have taken a massive dive in recent times, and the figures from Europe for April paint a grim picture. However, compared to the declines recorded by traditional companies like Renault and Volkswagen, electric vehicle manufacturer Tesla Inc (NASDAQ:TSLA) seems to have done better.
Renault owned Lada recorded a dip of 71.2% in Eastern Europe, while Volkswagen suffered a drop of as much as 76.9%. Tesla’s sales only dropped by 38% in Western Europe in April, and hence, it could be worthwhile to figure out if the company is in a better position to handle this crisis than many of its peers.
On the other hand, it is also important to point out that Tesla was one of the four companies which managed to boost its sales year on year in North America during the first fiscal quarter. That must come as a boost for most Tesla investors. On top of that, the company delivered as many as 11925 vehicles in April, and that reflects a year on year rise of as much as 98%. At the same time, the sales of vehicles in the United States came in at 8.6 million, which reflects a decline of as much as 24.5%. However, it managed to beat analysts’ estimates of 7.4 million.
Many analysts are hence bullish on the Tesla stock. The Chief Executive Officer and founder of Ask Investment Management, Catherine Wood, has earlier set the target price for the stock at $4000 a share by 2023.
‘Earlier on in the year, she set the target price for 2024 to $7000 a share. However, due to the troubles in the economy, Wood revised the target price for 2024 to $6800 a share. Experts believe that there is still significant upside in the Tesla stock as the electric vehicle market develops in the years to come.