Some analysts, including Mark Newton, are wary about investors buying Tesla Inc shares even after it fell from its record close on December 17.
What Happened
Newton said, “I don’t think this stock has bottomed yet, and probably has one more move down, which could[offset: happen over the next one or two weeks.” He thinks the stock could tumble 12% below current levels.
Background
Tesla rose after Donald Trump won the Presidential elections in November due to favorable regulations. However, since the stock closed at $479.86 on December 17, it hasn’t closed that high.
Current Status
Elon Musk did not reiterate his 20-30% growth in delivery outlook for 2025 in January during the company’s fourth-quarter earnings call. Concerns about EV demand are high across Europe, China, and California.
Autonomous Vehicle Front
Musk said the company will start deploying robotaxis for ride-hailing in Austin in June. However, according to Evercore ISIS analyst Chris McNally, that means there is not much to come out for the stock on the autonomous vehicle front until June.
Analyst Takes
Bearish
Steve Sosnick, chief strategist at Interactive Brokers, said the shares already have “an awful lot of growth” priced in. Any disappointment or puncturing of the faith in its growth will cause the stock to dip.
Bullish
Dan Ives, a Tesla bull, sees a lot of positive catalysts for the stock going forward. These include the company releasing new and more affordable vehicles in the first half of the year as promised in January and the launch of unsupervised vehicles in Austin in June.
Ives said, “Tesla gearing up for a new mass market vehicle launch in 1H25, making major product developments around autonomous/Optimus across its global ecosystem, Austin unsupervised FSD launch set for June, and a host of other growth EV/battery catalysts on the horizon.”
Price Action
Tesla shares closed up 5.8% at $355.94 on Thursday and are up 1% in premarket trading. The stock is down 6.2% year-to-date but up 88.6% over the past year.
Analyst Ratings
Tesla has a consensus “buy” rating based on the ratings of 31 analysts. The three most recent analyst ratings have an average price target of $324.62 for the stock.
Further Reading
For more information on the future of mobility, check out our Mobility coverage.
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