Investors jump back on Tesla bandwagon as shares soar 80% in weeks

Electric car maker is back in fashion as investors return to growth stocks

If an example of how fast market moods can change were needed, you’ll find few better than the 2023 version of Tesla (TSLA:NASDAQ). A stock market pariah right through 2022, shares in the electric cars-to-energy firm are up about 80% in the handful of weeks this year, adding $250 billion to its market value.

Optimism from analysts has certainly helped fuel the stock’s rally, the latest from Berenberg, after the investment bank put Tesla on its buy list despite lowering its target share price to $200.

Investors seem willing to buy into the idea that price cuts across a number of models are not necessarily a bad thing, if they can successfully lure Chinese buyers. The flipside is pressure on industry-leading margins which is yet to be fully reflected in Tesla’s numbers.

Based on surveys, analysts at

Auction Technology loses its shine as a rapid growth story

The shares have been hit hard by multiple downgrades to earnings forecasts

Down more than 50% since the start of 2022, Auction Technology (ATG) has been hit by various factors which have led to multiple downgrades to earnings forecasts in recent months.

The company provides online auction marketplaces to help auctioneers reach a bigger audience than the traditional inperson channel.

Approximately 80% of sales come from the US where it faces foreign exchange headwinds. Earnings

DOWN in the dumps

estimates have also been hit by a decline in asset prices and volumes, and higher investment in the business. Sales growth is forecast to slow considerably in the current financial year.

The stock is still relatively expensive despite the share price decline. According to data from Stockopedia, Auction Technology trades on 20 times EV to EBITDA (enterprise value to earnings before interest, tax, depreciation and amortisation) and 22 times

Wedbush are also telling clients that the China EV reacceleration story for Tesla is just starting to hit its stride and should be a tailwind in the first quarter. [SF] forward earnings.

Berenberg says there are reasons to be optimistic, including more revenue coming from value-added services and the potential to drive more bidders on its platform via investments in search engine optimisation, text messages and other new marketing features. [DC]