- Analysts aren’t bothering Tesla despite a market crash that wiped nearly $700 billion in value from its peak a year ago.
- In fact, even Tesla’s notable bear upgraded the stock, saying it likely bottomed out.
- “We believe the year-to-date pullback has balanced the near-term risk/reward,” said City analyst Itai Michaeli.
The downward spiral on Tesla stock has wiped nearly $700 billion from market value from last year’s peak, and Wall Street is starting to say enough is enough.
In fact, even a notable bear Tesla upgraded the stock to “neutral” from “sell,” saying it had likely bottomed out.
“We believe the year-to-date pullback has balanced the near-term risk/reward,” Citi analyst Itai Michaeli said in a note on Wednesday.
Here are the latest comments about Elon Musk’s Tesla from companies like Citigroup, Morgan Stanley, and Wedbush.
Father Michaeli, analyst at Citigroup
In addition to the Tesla stock upgrade, Michaeli raised its price target to $176 from $141.33, though the new price is still lower than where shares recently traded as they jumped 8% to as high as $183 on Wednesday.
“Certainly, macro/competitive concerns are likely to remain stacked as capacity increases, but as we wrote previously, in a hard landing scenario, Tesla’s long-term competitive position is also likely to improve and potentially be further enhanced by [President Joe Biden’s inflation reduction act]. ”
Adam Jonas, analyst at Morgan Stanley
Meanwhile, Jonas, Tesla’s bull, said in a note on Wednesday that the shares are approaching a “bear condition” price target of $150, indicating a potential buying opportunity at a deep discount.
It has an “Overweight” rating on Tesla stock with a price target of $330. While the Twitter acquisition remains a distraction for Musk and a potential risk to Tesla investors, Jonas said the company should increase sales by 37% next year, generate $15 billion in free cash flow, and cement its position as the world’s best electric car. maker.
“We believe Tesla’s ‘competition gap’ could widen, particularly as electric vehicle prices shift from inflation to deflation,” he wrote. “In terms of (the inflation-lowering act), we believe Tesla is by far the best OEM in terms of potential eligibility for consumer tax and production credits.”
Cathy Wood, CEO, Ark Investment
Wood has been a super bull on Tesla and set a price target of $4,600 earlier this year, before splitting his stock. In an interview with Bloomberg TV on Tuesday, she confirmed her optimism.
“A lot of people say, ‘Aren’t you worried about Tesla? No, we’re not because we’re in electric vehicles. They take a disproportionate share and will continue to do so from a market that we believe will, by 2027, be 85% to 95% of all cars sold in the world. This is on autopilot. He is [Elon Musk] We are now working on an autonomy that we think will work.”
“We think Tesla will do that [autonomous] in a much larger way.”
Dan Ives, analyst at Wedbush
Then there’s Ives, who has long been a bull but has become less sanguine recently by removing Tesla from Wedbush’s “Best Ideas” list earlier this month over the Twitter takeover.
On a new note, he expands on the “Twitter overhang” as a risk factor for Tesla stock:
The problem is that while Twitter’s Twilight Zone PR area is happening for the world to see and advertisers are kept at bay while Musk’s wild content management card is front and center, the perceived overlay of “key person risk” with Musk is a real drag on Tesla stock. and not back down,”
Ives also listed three major risk factors for both stocks and shareholders:
1. “Fear that Musk will sell more stock to fund Twitter’s red ink.”
2. “Tesla-linked Musk Brand Deterioration.”
3. “Musk is now focused on Twitter rather than Tesla.”