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Tesla on the Street: Analysts’ Recommendations before the 2Q17 Results

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Jul. 25 2017, Updated 4:06 p.m. ET

Recommendations on Tesla stock

According to the latest data compiled by Reuters, 32% of analysts covering Tesla stock (TSLA) gave it a “buy” recommendation. A majority (41%) of analysts recommended a “hold,” while the remaining 27% analysts didn’t see any potential upside in the company’s stock price and gave it a “sell” recommendation.

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Return potential and targets

As of July 24, Tesla’s consensus 12-month target price was $302.56—already ~12% lower than its market price of $342.52.

Wall Street analysts are clearly divided on Tesla stock ahead of its 2Q17 earnings event. Concerns about the company’s ability to deliver the Model 3 on time and increased costs for the Model 3 production ramp up could be the primary reasons for this uncertainty.

In 2016, the most notable analysts were positive about Tesla stock, but the stock disappointed by delivering a return of around -11%. This dismal Wall Street performance could be the reason why analysts remain divided.

Recommendations for other automakers

As of July 24, the analysts’ “buy” recommendations for legacy automakers (VCR) are as follows:

  • General Motors (GM): 36% of analysts, with a ~10% upside potential
  • Ford Motor (F): 28% of analysts, with a ~12% upside potential
  • Fiat Chrysler Automobiles (FCAU): 35% of analysts, with an upside potential of ~31%

In the next part, we’ll take a look at the analysts’ estimates for Tesla’s 2Q17 revenues.

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