After an outstanding performance in 2023, this year has been forgettable for Tesla (NASDAQ: TSLA) stock. Declining sales, production setbacks, layoffs, and revenue shrinkage due to cost pressures are just the tip of Tesla’s challenges.
According to CEO Elon Musk, approximately 10% of Tesla’s global workforce, totaling 140,000 employees, has been laid off as part of a strategy to ‘boost productivity, reorganize, and succeed.’
However, during the latest earnings call on April 23, Musk highlighted Tesla’s investments in artificial intelligence infrastructure to boost investors’ confidence. He mentioned that the company is discussing licensing its driver assistance system, Full Self-Driving (FSD), with one major automaker in the US.
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Tesla also announced plans to expedite the launch of ‘new vehicles, including more affordable models’ and Robotaxi, which can be manufactured on the same production lines as the current lineup.
Encouraged by a surprising turn of events where TSLA stock surged by over 10% despite missing analyst expectations, Finbold decided to assess Wall Street’s viewpoint and determine using their predictions for the next 12 months to see where TSLA shares will stand by December 31.
Wall Street analysts predict TSLA’s price in December 2024
Despite recent challenges, Wall Street appears to be divided on TSLA stock. Some analysts foresee it reaching as high as $310, while others anticipate a notable decline, possibly even to $22.86.
Despite these stark differences, Tesla is still regarded as a ‘hold,’ with the average 12-month price target at $177.30, representing a 4.18% upside compared to the current price.
Analysts at TipRanks provide this insight. Out of 35 ratings, only 8 suggest a ‘buy,’ and 8 indicate a ‘sell,’ while the predominant recommendation is ‘hold,’ with 19 ratings.
Bears are steadfast when it comes to TSLA stock
The lackluster performance and missed earnings estimates bear a significant weight on Wall Street, as noted from the ratings that TSLA shares received after the earnings report.
On April 24, Bernstein analyst Toni Sacconaghi reiterated a ‘Sell’ rating on Tesla stock and set a price target of $120.
Meanwhile, on the same date, JPMorgan maintained its ‘Underweight’ rating at $115. price target for TSLA stock after the company’s first-quarter earnings disappointed, indicating weaker-than-expected results.
The firm emphasized the potential for further negative earnings revisions and ongoing compression of valuation multiples for the electric vehicle manufacturer.
It’s hard to be bullish about TSLA stock
However, some analysts are traditionally bullish on TSLA stock and always try to highlight the positives about Tesla and its performance, but even they were forced to rein in their optimism.
Wedbush retained its ‘outperform’ rating on TSLA stock but adjusted the price target to $275 from $300, implying a 76% upside potential.
On April 24, Tom Narayan of RBC Capital maintained a ‘Buy’ rating on Tesla with a price target of $293.
Following the Q1 earnings report and call on April 24, Bank of America analysts upgraded Tesla stock from ‘Neutral to Buy,’ noting the end of positive catalysts.
BofA kept its price target at $220 per share, indicating a potential upside of over 30% from the previous day’s closing price.
It remains upon traders themselves to decide which camp they belong to and adjust their investments accordingly, taking into account Tesla’s technical and fundamental aspects.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
