In the previous part of this series, we noted that Tesla’s (TSLA) CEO, Elon Musk, recently raised his bets against Tesla bears by investing in its stock. According to Musk’s recent tweet, Tesla laid off 9.0% of its salaried employees earlier this month in an effort to attain its target of reaching profitability later this year.
Wall Street on Tesla
Tesla (TSLA) seems to be pushing its limits to achieve Model 3 production targets (FXD) as Musk reiterated the company’s Q2 2018 Model 3 production rate goal of 5,000 units per week.
According to recent data compiled by Thomson Reuters, 33.0% of the analysts covering TSLA recommended a “buy.” Another 37.0% of these analysts remained neutral on the stock and recommended a “hold.” The remaining 30.0% expect the company’s stock to drop and gave it “sell” ratings.
On June 13, analysts’ consensus target price for Tesla stock was $308.91, which was already ~10.0% lower than its market price of $344.78.
Tesla has a market cap of $58.5 billion, which is lower than General Motors’ (GM) market cap of $64.6 billion. However, it’s much higher than Ford’s (F) $47.1 billion market cap and Fiat Chrysler’s (FCAU) market cap of $32.6 billion.
Pessimism among analysts
After Tesla’s shareholder meeting on June 5, Morgan Stanley analyst Adam Jonas stated in an investor note that he doesn’t expect Tesla to achieve the 5,000-per-week Model 3 production rate until the first half of 2019. Jonas stated in the note, “Tesla’s CEO is saying that it is likely the company can achieve 5k per week one year ahead of our expectations.”
Next, let’s look at some key highlights of Tesla’s recent shareholder meeting.