In this article, we discuss some more future growth catalysts, hedge fund sentiment and analyst ratings for Tesla, Inc. (NASDAQ: TSLA). If you want to read our detailed analysis of the stock, go directly to Analyzing Tesla, Inc. (NASDAQ: TSLA): Future Growth Catalysts, Hedge Fund Sentiment and Analyst Ratings.
Growth Catalysts for Tesla, Inc. (NASDAQ: TSLA)
Authorities in Germany are expected to rule later this year on whether to grant Tesla, Inc. (NASDAQ: TSLA) state aid for a battery cell factory in Berlin. Reports in German media suggest that the California-based EV maker is expected to invest around €5 billion in the battery cell factory. This would equate to state subsidies of close to €1 billion. The investment by the company, should it go ahead, would be the largest investment in battery manufacturing by any company in Europe, a milestone of symbolic importance for the Musk-led firm.
Despite the pullback in share since April, Tesla, Inc. (NASDAQ: TSLA) stock has rebounded and outperformed competitors. However, the price volatility associated with the stock is still delivering a wide range of opinions on the firm. Of the 33 analysts on Wall Street who are covering the stock, there are 14 bullish views, 12 neutral ratings, and 7 bearish predictions. The price targets of the analysts also vary greatly, ranging from as low as $540 – the stock, as of September 14, is trading at around $743 – to $860. Some more ratings are discussed in detail below.
Analyst Ratings
GLJ Research’s Gordon Johnson: SELL
On September 8, investment advisory GLJ Research maintained a Sell rating on Tesla, Inc. (NASDAQ: TSLA) shares and underlined that the sales of the EV maker in China during August revealed much that was wrong with the firm. Gordon Johnson, an analyst at the firm, highlighted that the firm sold 12,885 vehicles in China during August. In an investor note, Johnson noted that this put the estimate of the number of sales in China for the EV maker during the third quarter to around 59,000, a concern since the firm lowered prices and even introduced a new model recently to increase sales.
Wedbush’ Daniel Ives: OUTPERFORM, $1000 Price Target
On August 20, investment advisory Wedbush maintained an Outperform rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $1,000. However, Daniel Ives, the analyst who issued the ratings update, termed a recent announcement regarding a bot being developed by the firm as an “absolute head scratcher” at a time there is increasing concern around rising EV competition and safety issues. The ratings update was issued following the AI Day of the EV maker during which it revealed a new computer chip designed and built in-house.
Bernstein’ Toni Sacconaghi: UNDERPERFORM, $300 Price Target
On August 17, investment advisory Bernstein maintained an Underperform rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $300. Toni Sacconaghi, the analyst at the advisory who has been a long-term skeptic of the EV maker, told investors in a research note that the firm was not being valued as an automotive firm, but rather as a technology company. The analyst argued that valuation per car for the firm was more than 50-times that of traditional automotive companies. He noted that the stock looked expensive given the margin profile.
Citi’s Itay Michaeli: SELL
On August 16, investment advisory Citi maintained a Sell rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $209. Itay Michaeli, an analyst at the firm, highlighted news reports about a probe into the autopilot system of the company and said the “more controversial approach to autopilot than peers” would lead to feature changes or a recall at the end of the investigation. The share price of the firm had dropped by 2% following the reports of the investigation regarding the autopilot.
Jefferies’ Philippe Houchois: BUY, $850 Price Target
On August 9, investment advisory Jefferies upgraded Tesla, Inc. (NASDAQ: TSLA) stock to Buy from Hold and raised the price target to $850 from $700. Philippe Houchois, an analyst at the advisory, cited higher battery electric demand and earnings leverage of the firm as some of the reasons behind the upgrade. The analyst also added that the growth of the EV industry was accommodating new competitors. He also raised the earnings estimates of the firm for the next fiscal year by 17% based on gross margin assumptions.
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