Tesla Inc (NASDAQ: TSLA) was plunging more than 8% on Thursday, receiving a bearish reaction to its second-quarter financials, despite beating expectations.

Several analysts weighed in on the stock following the earnings print with four firms raising their price targets, according to data from Zenger News Pro.

Baird analyst Ben Kallo maintains Tesla as a “Best Pick” for the second half of 2023 while taking note of cautions issued by the company and Tesla’s declining margins.

While Kallo expected a pullback in Tesla based on lower volume production and the announcement of FSD transferability this quarter, the analyst sees any retracement in the stock as a buying opportunity.

While Tesla’s steep sell-off Thursday likely concerned bullish traders, the downturn hasn’t been enough, so far, to negate the stock’s uptrend. The downturn was also taking place on lower-than-average volume, which suggests the bulls remain in control.

With that being said, bullish traders looking to enter into a position may choose to wait for signs that the local bottom has occurred.

Tesla was working to print a bearish kicker candlestick on Thursday, which suggests lower prices could come again on Friday. If Tesla continues to move lower on decreasing volume, the stock is likely to print a bullish reversal candlestick, such as a doji or hammer candlestick, over the next few days, which could signal a reversal to the upside.

Produced in association with Benzinga

Edited by Saba Fatima and Maham Javaid