- Analysts are not sour about Tesla, despite a market drop of nearly $700 billion from a year-ago high.
- In fact, even a well-known Tesla bear has downgraded the stock, saying it has lost its upside potential.
- “We believe the year-to-date pullback balances risk/reward in the short term,” said Citi analyst Ite Michaeli.
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Tesla’s stock decline has erased nearly $700 billion in market value from its peak a year ago, and Wall Street is beginning to say enough is enough.
In fact, even a well-known Tesla bear upgraded the stock to “neutral” from “sell,” saying its potential has been trimmed.
“We believe the year-over-year pullback has balanced risk/reward in the short term,” Citi analyst Ite Michaeli said in a note Wednesday.
Here are the latest comments on Elon Musk’s Tesla from companies like Citigroup, Morgan Stanley, and Wedbush.
Ite Micheli, Citigroup analyst
In addition to upgrading Tesla shares, Michaeli raised his price target from $141.33 to $176, though the new is still lower than where the shares last traded as they jumped 8% to $183 on Wednesday.
“Certainly, macro/competitive concerns are likely to remain an overreaction as capacity increases, but as we’ve written before, a hard landing scenario could also improve and potentially expand Tesla’s long-term competitive position. [President Joe Biden’s inflation reduction act],
Adam Jonas, analyst at Morgan Stanley
Meanwhile, Tesla bull Jonas said in a note Wednesday that the stock was close to its “bearish case” price target of $150, signaling a potential deep-discount buying opportunity.
He has an overweight rating on Tesla stock with a price target of $330. While the Twitter acquisition remains a distraction for Musk and a potential risk for Tesla investors, Jonas said the company’s revenue should grow 37% next year, generating $15 billion in free cash flow. and cements its position as the world’s best electric vehicle. the creator.
“We believe Tesla’s ‘competitive gap’ could widen, especially as EV prices fluctuate from inflation to deflation,” they wrote. “With regard to the (Inflation Reduction Act), we believe that Tesla is by far the best OEM in terms of potential eligibility for consumer tax and manufacturing credits.”
Cathy Wood, CEO of Arch Investments
Wood has been a Tesla super bull, setting a price target of $4,600 ahead of the stock split earlier this year. In an interview with Bloomberg TV on Tuesday, she reiterated her optimism.
“A lot of people say, ‘Aren’t you worried about Tesla?’ No, we are not because of our work on electric vehicles, they are capturing and will continue to take a disproportionate share of what we believe will be 85% to 95% of all cars sold in the world by 2027. World. on autopilot he is [Elon Musk] Now we think that working on autonomy will work.”
“We think Tesla will do that [autonomous] Largely.”
Dan Ives, analyst at Wedbush
Then there’s Ives, who was a long-time bull, but recently turned less optimistic, removing Tesla from Wedbush’s “best ideas” list earlier this month due to its takeover of Twitter.
In a new note, he expanded on the “Twitter overhang” as a risk factor for Tesla stock:
“The problem is that Twitter’s PR twilight zone is visible to the entire world and keeps advertisers at bay. While Musk’s wildcard of content moderation is paramount, Musk’s perceived overhang of “key man risk” is a real overhang. No more shorting Tesla stock,”
Ives also listed three main risk factors for both the stock and shareholders:
1. “Fear of Selling More Musk Stocks to Fund Twitter’s Red Ink.”
2. “Musk Brand Decline Linked to Tesla.”
3. “Musk now targets Twitter instead of Tesla.”