Tesla is a leading electric vehicle manufacturer and developer of autonomous driving software. The company’s stock has been under constant scrutiny, with various analysts providing their ratings and price targets. In this article, we will break down the recent analyst ratings and provide insights into the company’s market standing.
Analyst Ratings
A total of 32 analysts have provided their ratings for Tesla in the past three months, showcasing a mix of bullish and bearish perspectives. The following table summarizes their recent ratings:
| Category | Total Ratings | Last 30 Days | 1 Month Ago | 2 Months Ago | 3 Months Ago |
|---|---|---|---|---|---|
| Bullish | 9 | 0 | 2 | 4 | 3 |
| Somewhat Bullish | 11 | 1 | 2 | 3 | 5 |
| Indifferent | 9 | 0 | 5 | 2 | 2 |
| Somewhat Bearish | 0 | 0 | 0 | 0 | 0 |
| Bearish | 3 | 0 | 1 | 2 | 0 |
Price Targets
Analysts’ evaluations of 12-month price targets offer additional insights, with an average target of $358.81, a high estimate of $550.00, and a low estimate of $24.86. The current average has risen by 27.0% from the previous average price target of $282.53.
Recent Analyst Actions
The following table summarizes the recent analyst actions, including their ratings and price targets:
| Analyst | Firm | Action | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Daniel Ives | Wedbush | Raises | Outperform | $550.00 | $515.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $500.00 | $315.00 |
| Dan Levy | Barclays | Raises | Equal-Weight | $325.00 | $270.00 |
| Adam Jonas | Morgan Stanley | Raises | Overweight | $430.00 | $400.00 |
| John Murphy | B of A Securities | Raises | Neutral | $490.00 | $400.00 |
| Stephen Gengaro | Stifel | Raises | Buy | $492.00 | $411.00 |
| Chris McNally | Evercore ISI Group | Raises | In-Line | $275.00 | $195.00 |
| George Gianarikas | Canaccord Genuity | Raises | Buy | $404.00 | $298.00 |
| William Stein | Truist Securities | Lowers | Hold | $351.00 | $360.00 |
| Gordon Johnson | GLJ Research | Maintains | Sell | $24.86 | $24.86 |
Key Insights
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance.
- Rating: Analysts provide qualitative assessments, ranging from ‘Outperform’ to ‘Underperform’, reflecting expectations for the relative performance of Tesla compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Tesla’s future value, providing insight into analysts’ changing expectations.
About Tesla
Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, including luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and a robotaxi.
Tesla’s Economic Impact
- Market Capitalization: The company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.
- Positive Revenue Trend: Tesla achieved a noteworthy revenue growth rate of 7.85% as of 30 September, 2024, showcasing a substantial increase in top-line earnings.
- Net Margin: The company’s net margin is a standout performer, exceeding industry averages, with an impressive net margin of 8.61%.
- Return on Equity (ROE): Tesla’s ROE stands out, surpassing industry averages, with an impressive ROE of 3.18%.
- Return on Assets (ROA): Tesla’s ROA stands out, surpassing industry averages, with an impressive ROA of 1.86%.
- Debt Management: With a below-average debt-to-equity ratio of 0.18, Tesla adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. They publish “analyst ratings” for stocks, which reflect their expectations for the relative performance of the company compared to the broader market. While analysts are specialists, they are also human and can only forecast their beliefs to traders.