According to UBS, the stock market decline has given an appealing entry opportunity for a high-growth company like Tesla.

The stock was upgraded by analyst Patrick Hummel, who retained his price target at $1,100. TSLA, +1.25% shares, down 31% on the year, gained nearly 3% in premarket trading.

A record-high order backlog and two new giga-factories are making the operating picture brighter than ever, according to Hummel. In light of the Shanghai blockade, he did lower his profits per share projections for 2022 by 12%.

That vertical integration is expected in the future to result in greater growth and profitability for Tesla over the next several years. According to him, “Tesla can exceed rivals with a combination of in-house cell capacity, its lead over worldwide competitors in employing LFP cells, and its large proportion of directly procured battery resources, lithium above all,” he stated.

Hummel was unfazed by Tesla’s rumored intention to reduce paid staff by 10%. Because of the bleak macro picture, he added, “we believe it is important to step up our efficiency efforts” for a firm developing at such a rapid pace.

Elon Musk’s pursuit of Twitter TWTR, +0.77 percent using pledged Tesla shares to pay his offer has taken a toll on Tesla’s share price. Key guy risk is how some describe Musk.

Dryly, he observes, “Elon Musk remains Tesla’s principal guy, with all the hazards associated with it.” 

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