Analysts’ recommendations on Tesla stock
According to data compiled by Reuters as of June 13, 2017, about 29.0% of analysts covering Tesla (TSLA) have given the stock a “buy” recommendation. About 43.0% have recommended a “hold,” while 28.0% have suggested a “sell.”
These stock recommendations are based on the consensus of 21 Wall Street analysts currently covering Tesla.
12-month price target
On June 13, 2017, Tesla’s 12-month consensus target price was $269.56, which is already about 28.0% lower than its market price of $375.95. Notably, Tesla stock has yielded quite impressive returns so far in 2017. On a year-to-date basis, it has risen about 75.9%, while on a quarter-to-date basis, its gains stood at 35.2%.
With these stellar stock gains, Tesla became the most valuable automaker by market cap in the United States. As of June 13, 2017, Tesla had a market cap of $61.8 billion, which was much higher than legacy auto companies (XLY) Ford (F) and General Motors (GM) as well as motorcycle maker Harley-Davidson (HOG).
The 14-day relative strength index technical indicator on the company’s daily stock price chart is 72.9, indicating an overbought condition.
Model 3 initial production to begin in July
In its 1Q17 shareholder letter, Tesla informed investors that the initial production of its Model 3 would start in July 2017. To avoid any delays in its Model 3 production, the company has been in touch with Model 3 parts suppliers to ensure timely deliveries.
In the next part of this series, we’ll see how analysts are rating General Motors stock in June 2017.