Recommendations on Tesla stock

According to the latest data compiled by Thomson Reuters, 39% of analysts covering Tesla stock (TSLA) have given it “buy” recommendations. Nearly 26% of analysts have given it “holds,” while the remaining 35% expect its stock to fall and have given it “sells.”

These recommendations are based on the views of 31 Wall Street analysts surveyed by Reuters.

Most Analysts Recommend ‘Buys’ on Tesla ahead of Its Q1 Results

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Upside potential of 14%

On April 17, analysts’ consensus 12-month target price for Tesla stock was $309.27, which indicated a potential upside of ~14.0% from its current price of $271.23.

Many analysts covering Tesla stock have turned positive on it in the last few months, with more analysts recommending “buys” on it now. In contrast, analysts’ consensus target price on Tesla has fallen significantly to $309.27 from its level of $330.36 about three months ago.

Skepticism about Tesla’s ability to maintain good profitability and protect its profit margins could be why nearly 35% of analysts still recommend “sells” on the stock.

Peer comparison

On April 17, Wall Street analysts’ “buy” recommendations for other automakers (XLY) were as follows:

  • A total of 71% of the analysts covering General Motors (GM) had given it “buys,” and its target price indicated a potential upside of 18.8%.
  • A mere 23% of analysts had given Ford Motor Company (F) “buys” with no upside potential, as the stock was already trading near their consensus target price of $9.27.
  • A total of only ~22% of analysts had given Fiat Chrysler Automobiles (FCAU) “buys,” and its target price indicated a potential upside of 35.1%.
  • A total of ~50% of analysts had given NIO (NIO) “buys,” and its target price indicated a potential upside of 72.3%.

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