TESLA INC. (NASDAQ:TSLA): Tesla bulls look for a U.S. government EV tax benefit to push the stock higher

 


Tesla stock bounced off a key trendline support at ~ $152.37 in late April and could now be heading back to retest the neck line at $182.33. One of the driving forces for this big move could be the EV tax credit in the Inflation Reduction Act of 2022, signed into law in August last year.

According to the May 9 note by Morgan Stanley analyst Adam Jonas, Tesla could experience IRA benefits equal to as much as 9% to EPS in fiscal year 2023. That translates to $0.36 per share, or over $1 billion in net income. Jonas added in his note that the tax credit functions as an insurance policy that investors are currently overlooking.

Beware, though, that Tesla bears could step in at $182.33, where the stock is facing an overwhelming amount of overhead supply.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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