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Analysts revise Tesla stock price target

Analysts revise Tesla stock price target
Ana Zirojevic

Amid Tesla (NASDAQ: TSLA) recording positive results with its humanoid robot Optimus and ongoing controversy regarding the 2018 pay package for its CEO Elon Musk, some Wall Street analysts have updated their stock ratings for the popular electric vehicle (EV) manufacturer.

Indeed, TSLA stock has been in the $175 price range for multiple weeks and months, with the exception of a brief increase to $186 in May, when the company revealed new details for its electric semi truck program, shortly after which the Tesla share price corrected again to its previous trend.

Tesla stock price prediction

In this context, several Wall Street experts have changed their Tesla stock price targets for the next 12 months, including analysts from JP Morgan (NYSE: JPM), who reiterated a ‘sell’ score and the price target at $115, citing a belief that Robotaxi Tesla making revenue is likely years away.

Specifically, according to JPMorgan’s Ryan Brinkman, the upcoming Robotaxi Tesla reveal will not precede immediate profits, based on his recent meeting with Tesla’s director of investor relations, who said that the underlying vehicle platform would not launch soon. As Brinkman explained:

“We expect Tesla to show a robotaxi concept on Aug. 8 and perhaps an accompanying app, and to reveal more about its expected business model. But we do not expect material revenue generation likely for years to come.”

At the same time, Barclays has assigned TSLA shares a ‘hold’ rating, with an optimistic $180 price target by its analyst Dan Levy, who in a recent research note has argued that shareholders will re-approve Musk’s compensation plan, which a Delaware judge ruled should not have received approval to begin with.

As Levy pointed out:

“Assuming our base case view – a ratified comp plan that supports a path to Elon’s appeal in the Delaware case – we don’t expect this to be the time when we find out the value of the ‘Elon Premium’ in Tesla stock. Yet even considering such a risk reminds us that eventually, he will move on from the CEO role – a point he has made in the past. And with the recent turnover of top mgmt at Tesla below Elon, succession planning and key man risk remains an overhang.” 

On top of that, Bank of America Securities (NYSE: BAC) has also retained its Tesla stock price target, with analyst John Murphy maintaining a ‘buy’ score, holding onto his previous prediction of $220, reiterated back in April when he expressed concerns about TSLA’s weaker EV fundamentals in Q1.

Finally, Bernstein’s Toni Sacconaghi has recently rated TSLA stock as a ‘sell’ and set the price target at $120, opining it might drop by over 5% if Tesla shareholders this week approve the 2018 pay package for Musk in the amount of $56 billion but, nonetheless, stating they will likely not support it. As he told CNBC:

“I think it’s going to be tough to pass. The math is relatively straightforward. You have to get a majority of votes of shareholders that vote, and part of the challenge for Tesla is that not everyone votes.”

Tesla stock price analysis

Taking into account the recent updates, the Wall Street consensus puts the average price of TSLA stock at $172.92 in the next 12 months, with the majority of analysts agreeing that Tesla shares are currently a ‘hold,’ with nine of them recommending a ‘sell,’ and nine voting for a ‘buy.’

12-month Tesla stock price targets. Source: TipRanks
12-month Tesla stock price targets. Source: TipRanks

For now, the price of Tesla shares at press time stood at $169.63, which indicates a 0.63% decline on the day, a drop of 1.76% drop across the previous week, adding up to the 1.31% loss in the past month while also dipping 31.73% since the year’s turn, as per data on June 12.

Tesla stock price 30-day chart. Source: Finbold
Tesla stock price 30-day chart. Source: Finbold

Ultimately, chances are that the price of Tesla stocks might follow the path set forth by the majority of Wall Street analysts, but it might also suddenly take a different turn, so doing one’s own research, weighing the risks, and keeping up with any relevant Tesla news is critical when investing, instead of blindly relying on any Tesla price predictions.

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