Tesla Inc. analysts are cautious after the company’s fourth-quarter deliveries came in below consensus estimates and production fell below delivery figures. Despite this, many analysts believe that Tesla’s long-term growth prospects remain strong.
Analyst Ratings
Several analysts have weighed in on Tesla’s performance, with varying opinions on the company’s future prospects.
- Canaccord Genuity: Analyst George Gianarikas maintained a Buy rating on Tesla and raised the price target from $298 to $404. Gianarikas believes that Tesla’s growth prospects justify a price-to-earnings ratio of around 40x 2027 estimated earnings per share of $10.11.
- GLJ Research: Analyst Gordon Johnson maintained a Sell rating with a price target of $24.86. Johnson believes that weaker-than-expected delivery and production figures could suggest “stormy weather” ahead for Tesla bulls in 2025.
- Truist: Analyst William Stein maintained a Hold rating and lowered the price target from $360 to $351. Stein believes that Tesla’s average selling prices were down quarter-over-quarter and that the company will continue to face downward pressure on prices in the long term.
Long-Term Growth Prospects
Despite near-term challenges, many analysts believe that Tesla’s long-term growth prospects remain strong. Gianarikas notes that Tesla has a generational set of growth opportunities ahead, including electric vehicles, autonomy/AI, energy storage, and robotics. Stein also believes that Tesla’s long-term prospects are strong, but that the company will need to navigate near-term challenges to achieve its goals.
Current Price Action
Tesla’s stock is currently up 3% to $389.20, with a 52-week trading range of $138.80 to $488.54.
Key Takeaways
- Tesla’s fourth-quarter deliveries and production were below consensus estimates
- Analysts are cautious about Tesla’s near-term prospects, but believe that the company’s long-term growth prospects remain strong
- Tesla’s stock is currently up 3% to $389.20, with a 52-week trading range of $138.80 to $488.54
What’s Next for Tesla?
As Tesla prepares to release its fourth-quarter earnings report, investors will be watching closely to see how the company performs. With many analysts predicting a “bloodbath quarter”, it will be interesting to see how Tesla navigates its near-term challenges and achieves its long-term growth prospects.