Tesla stock (NASDAQ: TSLA) is in the midst of a severe correction.
Following a disappointing quarterly report on January 29, a host of bearish factors have combined to enact greater selling pressure on the electric vehicle (EV) company’s shares.
Chief Executive Officer (CEO) Elon Musk’s political involvement, both at (adoptive) home and abroad, hasn’t exactly endeared him to Tesla’s customer base. Beyond brand damage, the carmaker is facing a substantial drop in sales.
Wall Street has certainly taken notice. In the first week of March alone, two eminent Wall Street investment banks — Bank of America and Goldman Sachs, slashed their price targets for TSLA shares. On the other hand, Morgan Stanley and Stifel held firm to previously-set price targets that imply significant upside to come.
At press time, Tesla stock was trading at $262.52, with a 30.58% drop on the monthly chart which has brought year-to-date (YTD) losses up to 34.99%.
On March 7, an additional two stock market analysts revised their outlook on TSLA — and although both issued bullish forecasts, there is an interesting discrepancy between their price targets.
TD Cowen and Wedbush set bullish Tesla stock price targets
TD Cowen analyst Itay Michaeli assumed coverage on Tesla stock with a ‘Buy’ rating. The researcher set a $388 price target. In a note shared with investors, Michaeli opined that both bull and bear cases have merit.
However, with the meaningful pull back in prices seen as of late, TD Cowen is ‘tactically bullish’, citing several potentially consequential catalysts (EV launches, autonomous vehicle (AV) eyes-off deployments, and robotics), as well as the fact that Tesla is less-exposed to tariffs that some competitors.
Dan Ives, one of the Street’s most notable tech bulls, reiterated an ‘Outperform’ rating on the same day. The Wedbush analyst set a $550 price target on Tesla stock.
Further clarifying his decision, Ives cited his belief that Tesla’s autonomous vehicle segment will reach a value of $1 trillion — and that the Trump administration’s focus on deregulation will align favorably with the automaker’s AV roadmap and long term vision.
So, how do these two forecasts compare to the general outlook put forth by researchers? At present, the average 12-month price forecast for Tesla stock sits at $347.59. That equates to a 32.40% upside.
TD Cowen’s price target of $388 anticipates a 47.79% rebound. Dan Ives’ $550 price forecast, if met, would represent a massive 109.5% rally from current prices.
Featured image via Shutterstock
