As Tesla stock plunges to new two-year lows, a wave of analysts is becoming increasingly optimistic. The worst may be over for shares of the electric vehicle manufacturer. peaked even if it is unclear how long stocks will take to fully recover.
In a note to clients Wednesday morning, Morgan Stanley analyst Adam Jonas said Tesla’s recent collapse – which has sent prices down 54% over the past year – may present an “emerging … value opportunity” for investors as the current prices of about $170 are approaching a projected worst-case scenario of $150.
Jonas stopped predicting exactly how fast the stock would recover, but reiterated a $330 price target for Tesla, suggesting shares could skyrocket some 94% over the next year.
In an email this morning, Wedbush analyst called Tesla’s stock drop “exaggerated,” blaming concerns that Musk could sell more Tesla stock to fund Twitter’s cash burn and Musk’s “brand deterioration” as investors worry that he’s “all focused on Twitter instead of Tesla for now. .”
Nevertheless, Ives, reiterating a bullish price target of $250, says Tesla remains on track to produce 2 million vehicles this year — a “very impressive” achievement given a “nervous” macroeconomic backdrop that has led many EV manufacturers to encouraged to save costs.
“Musk should reassure investors…the Twitter soap opera won’t disrupt the longer-term Tesla growth story,” Ives says, adding that the Twitter overhang is likely to weigh on Tesla stock at least until the automaker’s end of January reports its fourth-quarter numbers, which Wedbush believes could revive investor confidence.
Citi analyst Itay Michaeli hit a similar tune on Wednesday: Although Citi has issued one of the lowest Wall Street price targets for Tesla — at $176 — Michael upgraded Tesla shares to neutral in a morning note, telling investors that the pullback of the share has made prices much more reasonable .
$289. That’s the average price target for Tesla stock among Wall Street analysts — up 70%, according to FactSet.
Shares of Tesla skyrocketed to an all-time high last November, but took big losses after Musk quickly began selling shares and paid some attention to social media giant Twitter this year. “At the end of the day, Musk is Tesla, and Tesla is Musk,” says Ives. “Any black eyes for Musk will be reflected in Tesla’s stock, and this indicates that Tesla is down 26% since the Twitter deal ended at the end of the day. October was officially closed. The Federal Reserve’s rate hikes have added to investor concerns and battered market sentiment, sending the tech-heavy Nasdaq down 30% this year.
$183 billion. That’s how much the 51-year-old Musk, the richest person in the world, is worth, according to UKTN estimates.
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