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Tesla’s 2016 and Beyond: Analysts Have Mixed Opinions

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Dec. 4 2020, Updated 10:52 a.m. ET

Analysts’ recommendations

According to Bloomberg consensus, 39.1% of analysts covering Tesla Motors (TSLA) have given “buy” recommendations, while 34.8% of analysts have given it “hold” recommendations. The remaining 26.1% of analysts have recommended a “sell.”

Wall Street analysts are maintaining a mixed view on Tesla due to the production constraints that the company has been facing lately. Going forward in 2016, it will be interesting to see how soon the company can bring significant improvement on its production side.

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Note that the above recommendations are based on the views of 22 analysts covering Tesla. Investors should pay attention to analysts’ recommendations, as they may affect the company’s stock price movement. If a popular analyst changes his or her view, a significant short-term movement in the stock price could occur.

Target prices

As of February 5, 2016, Tesla’ consensus 12-month target price was $270.36 with an upside potential of 54.2% from its current market price of $175.33. Among all popular analysts, Adam Jonas of Morgan Stanley has the highest price target of $333 for the company, which represents a ~90% upside potential. Ryan Brinkman of JPMorgan Chase and Brian A. Johnson of Barclays expect Tesla to underperform the broader market. They maintain a low target price of $180.

In the last couple of years, most notable analysts have been positive about Tesla, primarily because the company has exceeded its market expectations on many occasions as discussed in the previous article. This performance has showcased the growth potential of the electric vehicle market.

Recommendations for peers

Wall Street analysts’ consensus recommendations for Tesla’s peers’ (VCR) expected 12-month stock price movements are as follows:

• Toyota (TM): 66.7% of analysts have recommended a “hold” with a consensus target price of $148.36.
• Fiat Chrysler Automobiles (FCAU): 46.7% of analysts have given it a “buy” with 53% upside potential.
• Ford (F): 42.9% of analysts have given it a “buy” with 38.7% upside potential.
• General Motors (GM): 57.1% of analysts have given it a “buy” with a 38.7% upside potential.

Continue to the next part of this series for a closer look at analysts’ estimates for Tesla’s revenues.

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