Saying that 2023 was a tough year for electric vehicle (EV) companies is hardly a stretch, given that the demand declined significantly and multiple prominent firms like Lucid (NASDAQ: LCID) and Nio (NYSE: NIO) were slaughtered on the stock market and saw their delivery target figures gutted.
This year similarly started poorly for the industry as even the major firms like Elon Musk’s Tesla (NASDAQ: TSLA) began showing major signs of decline.
The firm has, in fact, faced a string of setbacks in recent months, including certain production issues related to the Cybertuck and major labor disputes – particularly with workers in Scandinavia – which saw its stock fall nearly 25% since January 1 despite its recent reports showing strong results and record-breaking delivery figures.
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Despite this, significant optimism remains for the EV industry, as evidenced by the fact that the average 12-month price target for firms like Nio constitutes a 90% upside.
Still, Tesla has always had its fair share of triumphs and challenges and its fair share of bulls and bears, and Finbold decided to see what they foresee for the company in the next 12 months amidst a challenging market and a rising tide of prominent competitors.
Wall Street sets TSLA price target
Despite the declining demand and price cuts stemming from it, Wall Street experts, on average, remain cautious yet bullish on Tesla’s stock. Overall, its rating on the popular stock analysis platform TipRanks is recorded as “hold.”
Still, a closer examination reveals that analysts are deeply divided on their stance on Elon Musk’s firm. Out of the 34 taken into account, 12 rate the company’s stock as a “buy,” 6 as a “sell,” and as many as 16 are neutral on the shares.
The price targets, despite forecasting a 17.60% upside to $220.98 on average, showcase similar divisions. At press time, the lowest target was given by the founder and CEO of GLJ Research, Gordon Johnson, who believes TSLA is bound to crash to $23.53.
On the flip side, Morgan Stanley’s (NYSE: MS) Adam Jones and Wedbush’s Dan Ives still believe the company has a lot of room to grow and foresee its shares rising as high as $345 – 83.60% compared to the press time price of $187.91.
TSLA price analysis
This year has so far brought nothing little other than a stock market downtrend to the shares of Elon Musk’s Tesla. Since the year started, the company’s stock declined 24.36% as its latest earnings report – while relatively strong – failed to impress investors.
In fact, zooming out reveals a protracted period of trials and tribulations for Tesla as its stock is, likewise, down 25.27% in the last six months and 3.52% in the last 52 weeks. On the other side, the firm rose slightly in the last week – 1.28% – but ended Friday, February 2, 0.50% in the red at $187.91.
Finally, it is noteworthy that TSLA is currently trading on the lower side of its 52-week range, which is especially noteworthy given that the S&P 500 is near new highs. Additionally, the EV maker’s stock is currently giving a strong sell signal – the bear flag chart pattern – indicating a possible shorting opportunity.
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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.
