Analysts’ ratings on Tesla stock

According to data compiled by Reuters as of July 10, about 35% of the analysts covering Tesla (TSLA) recommend a “buy,” 35% recommend a “hold,” and 30% recommend a “sell.”

The ratings were based on the consensus of 26 Wall Street analysts covering Tesla stock.

Tesla: Analysts’ Ratings after the China Factory Announcement

No upside potential

As of July 10, Tesla’s 12-month consensus target price was $290.32, which was already ~10% lower than its market price of $322.47. In the last three months, analysts’ consensus target for Tesla’s stock price fell from $320 to $290.

Analysts’ skepticism about Tesla’s ability to sustain the high Model 3 production rate could be one of the reasons why analysts’ consensus target is lower than the stock’s market price.

After being under pressure in the first quarter, the stock outperformed all of the auto stocks in the second quarter. Investors’ high expectations from the company’s production and deliveries data kept its stock soaring in the second quarter.

Notably, Tesla stock delivered a handsome positive return of ~28.9% in the second quarter. The gains were much higher than the broader market and other mainstream automakers (XLY). In comparison, the S&P 500 Index had a 2.9% return, while Fiat Chrysler (FCAU), Ford (F), and Toyota (TM) fell 7.9%, 0.1%, and 1.2%, respectively, in the second quarter.

Second-quarter earnings should remain in focus

As mentioned above, Tesla’s ability to sustain its high vehicle production rate could continue to be the key focus for investors in the third quarter. Also, the company’s second-quarter results could give a clear direction to its stock price in the coming weeks.

Tesla is expected to release its second-quarter earnings report in the first week of August. Please visit Market Realist’s Autos page for ongoing updates on the auto industry.

Latest articles

19 May

Chinese Stocks are Getting Crushed

WRITTEN BY JP Gravitt

In the last month the CSI 300 is down 11.5%, much more than US indices.

JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.

17 May

What to Know about the US-China Trade War

WRITTEN BY Mayur Sontakke, CFA, FRM

The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.

On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.

Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.

Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.

172.31.16.229