What Are Analysts Estimating for Tesla Stock?

Tesla stock

Since Tesla Motors’ (TSLA) beginning, its stock has been one of the most talked about investment ideas on Wall Street. In the last couple of years, the stock has outperformed other mainstream automakers, including General Motors (GM) and Ford (F). However, in fiscal 2016, Tesla’s stock movement has mostly been sideways. Let’s find out now what analysts are recommending for Tesla stock.

What Are Analysts Estimating for Tesla Stock?

Analyst recommendations for Tesla

According to the latest Bloomberg consensus, 47.4% of analysts covering Tesla Motors (TSLA) have given the stock “buy” recommendations. About 21.1% of analysts have given it “hold” recommendations. The remaining six of the total of 19 analysts have recommended a “sell.”

We should note here that investors should generally pay attention to analyst recommendations because they can 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 follow.

Target prices

As of May 2, 2016, Tesla’s consensus 12-month target price was $292.20, with an upside potential of ~34% from its current market price of $218.96. Among the popular analysts, Adam Jonas of Morgan Stanley has the highest price target of $333, which represents a 52% upside potential.

Ryan Brinkman of J.P. Morgan and Colin Langan of UBS expect Tesla to underperform the broader market. They’ve maintained low target prices of $185 and $160, respectively.

Recommendations for other automakers

Below are some Wall Street analysts’ consensus “buy” recommendations for other automakers (VCR), with their expected 12-month stock price movements:

  • Ford – 50% of analysts, with an 18.9% upside potential
  • Fiat Chrysler Automobiles (FCAU) – 53.3% of analysts, with a 38.6% upside potential
  • General Motors – 52.4% of analysts, with a 25.3% upside potential
  • Ferrari (RACE) – 56.3% of analysts, with an 11.2% upside potential

In the next part, we’ll look at some factors that could drive Tesla stock in fiscal 2016.