Analysts don’t trust Tesla shares
2022.12.20 06:56
Analysts don’t trust Tesla shares
Budrigannews.com – (NASDAQ:) Tesla Yesterday’s closing price of $149.87 marked the stock’s lowest daily close since November 2020. Even though Elon Musk’s poll about quitting his job as CEO of Twitter moved higher earlier in the day, Tesla stock still managed to close 0.24 percent lower.
At the very least, the manufacturer of electric vehicles (EVs) saw their price targets lowered today by two sell-side analysts. Due to lower demand, Evercore ISI analysts decreased their Tesla stock price target by $100 to $200 per share.
They sent a note to clients that stated, “While we continue to view TSLA as having a leading EV gross margin advantage from global scale, vertical integration, and US IRA benefits, it is impossible to ignore that investors are already well aware of these benefits but now must ALSO battle test demand assumptions for ’23-25.”
The “Tesla thesis drift from 1) unlimited demand/Rev to 2) margin “story,” which has occurred over the last six to twelve months,” is causing the analysts more and more anxiety.
Additionally, they point out that Tesla stock is currently trading below the $150-163 support zone, which was previously thought to be a “critical battleline to defend.”
The analysts added, “Short term it is too late to sell, but also too early to buy (net long).”
Daiwa analysts also decreased their price target for Tesla stock from $240 to $177, citing Twitter discretion and a weak macro environment. The brought down cost target reflects lower gauges with Daiwa presently anticipating that 5% less units should be conveyed in 2023.
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In a note, the analysts stated, “We continue to view Tesla stock favorably on a fundamental basis, given the company’s increasing competitive advantage from the Inflation Reduction Act and potential innovations such as the 4680 battery with dry electrode process.”
