Shares of Tesla (NASDAQ: TSLA) are up 1.2% in premarket trading on Friday, May 12, after the electric carmaker announced it had hiked prices of its Model S, Y, and X electric vehicles in the US. The carmaker raised prices for all versions of its Model S and X cars by $1,000, while Model Y variants saw a less aggressive price hike of $250, according to Tesla’s official website.
However, just hours later, Reuters reported that the company would recall as many as 1,104,622 vehicles, both imported and those that were produced in China. The price increases and the news of the latest recall so far appear to have not had a negative impact on TSLA shares ahead of the market open on Friday with the stock currently up 1.5% at press time.
According to China’s State Administration for Market Regulation, Tesla’s vehicles that face recalls include imported Model S, Model X, and Model 3 cars, as well as China-made Model 3 and Model Y.
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The recall, which will come into force on May 29, was filed by Tesla in accordance with China’s management regulations for deficient vehicle recall, the regulator wrote in the statement.
Tesla stock analysis
Tesla closed on Thursday, May 11, at $172.08 and since the start of the year, TSLA gained more than 45%, though it still remains down over 35% year-over-year. Compared to its 52-week high of $314.6 per share, the automaker’s shares are down more than 44%.
It closed above its 100-day moving average (DMA) yesterday, and this indicator is now likely to support prices. In case the price still heads lower following the recall, the next support level is just above the $150 handle, where the 4-month low is located. On the upside, the 200-weighted moving average (WMA) should offer some resistance around $180.
TSLA price forecast
In the past 3 months, 47 analysts on TradingView offered their ratings on TSLA. 19 financial experts rated the automaker’s stock as a ‘strong buy,’ 4 as a ‘buy,’ and 18 as a ‘hold.’ Only 1 analyst thinks the stock is a ‘sell,’ while 5 marked it as a ‘strong sell.’
Meanwhile, 36 analysts provided 1-year predictions for Tesla’s stock. Based on their forecasts, the 1-year consensus price target stands at $188.73, implying a possible upside of around 9.7%.
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