The recent price action by Tesla (NASDAQ: TSLA) stock has been impressive, as TSLA shares managed to erase over 40% in the year-to-date (YTD) losses and finally trade in green in 2024.
This recovery comes after the EV maker’s 32.43% monthly gain and a 2.99% increase in the latest trading session.
Progress of 3.55% carried over in the pre-market trading on July 15.
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An impressive performance didn’t go unnoticed by Wall Street analysts, as they revised their price targets upward, with the most recent price target of $400 projecting a 60% increase from current price levels.
New Wall Street high for Tesla stock at $400
On July 15, Global Equities Research increased Tesla’s stock price target from $340 to $400, citing a rise in demand for the company’s electric vehicles (EVs).
“Tesla is seeing accelerating demand due to the $7,500 Point of Sale EV Credit, which effectively lowers the vehicle price by another $7,500,” analysts noted.
Analysts highlighted that demand for Tesla’s vehicles, especially the Model 3 and Model Y, has been “extremely strong” over the past two weekends. The additional $7,500 reduction in the price of these cars in the U.S. has driven a “solid customer pull.”
Global Equities Research also pointed out that Tesla has simplified the ordering process with in-house software. This software streamlines the workflow from placing an order to processing the point-of-sale credit, reducing the vehicle price, and integrating with the IRS Inflation Reduction Act portal.
On July 12, Mizuho analyst Vijay Rakesh raised the price target for the electric vehicle (EV) company’s shares from $180 per share to $230.
On the same day, Citi increased its price target for TSLA stock to $274, up from the previous target of $182 per share. Despite the higher price target, analysts have maintained a “neutral” rating on the stock.
However, UBS has downgraded Tesla from “neutral” to “sell” while increasing the price target from $147 to $197. This revision follows a reassessment of Tesla’s valuation, considering the broader market’s high expectations for the company’s growth, particularly in artificial intelligence (AI).
Other analysts are undecided on TSLA stock
Tesla’s stock future price represents one of the current debating points on Wall Street, as analysts cannot reach a consensus on the EV maker giant. This led to an overall “hold” rating, where of 35 analysts, 13 each recommended a “buy” and a “hold,” and 9 opted for a sell.
An average price target is opposed to the target assigned by Global Equities Research, representing a 22.18% downside from current price levels of $193.18.
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