Tesla (NASDAQ:TSLA) stock gained in today’s pre-market trading session. The stock rose over 5% in today’s trading session at 9:47 AM ET. The Dow Jones Industrial Average surged by over 900 points or 4.2%. Also, the S&P 500 and the Nasdaq Composite gained about 4.1% and 4.0%, respectively. Wall Street recovered as the COVID-19 cases slowed down in the US and Europe.
On April 3, Tesla stock rose 5.6% and closed at $480.01 with a market cap of $88.4 billion. Tesla’s stock price has fallen 6.7% in the trailing five-day period, while it has risen 64.5% in the trailing 12-month period. The stock is trading 50.5% below its 52-week high of $968.99 on February 4, 2020. The stock was also trading 171.2% above its 52-week low of $176.99 on June 3, 2019. On a YTD (year-to-date) basis, the stock has risen by 14.7% as of April 3.
Analysts’ recommendations for Tesla stock
As of Monday, 34 analysts cover Tesla stock. Eight out of the 34 analysts recommend a “buy,” 14 recommend a “hold,” and 12 recommend a “sell.” Analysts have an average target price of $454.57 on Tesla. The target price implies a return of -5.3% based on the closing price of $480.01 on April 3. The consensus target price for the stock has fallen from $504.33 in March—a fall of 9.9%.
Today, Jefferies analyst Philippe Houchois upgraded Tesla stock to “buy” from “hold.” However, the analyst decreased its target price on the stock from $800 to $650. According to a report from TheFly, “Despite reducing Tesla’s estimates, the analyst still sees 2020 revenue growth of 27%. The company’s earnings and free cash flow will be supported by better productivity, stable average selling prices and income from zero-emission vehicle credits.” The report also said, “Tesla is the only legacy-free carmaker and is participating in a positive EV sum-game, contends the analyst. Further, post COVID-19 crises, Houchois expects higher consumer support for energy efficient transport.”
Tesla’s growth projection
Tesla reported sales of $24.6 billion in 2019—a rise of 14.5% YoY (year-over-year) from sales of $21.5 billion in 2018. The company reported an adjusted EPS of $0.20 in 2019 compared to -$1.33 in 2018. Wall Street analysts expected the company to report sales of $24.5 billion and earnings of -$0.45 in 2019.
Wall Street analysts expect Tesla to report sales of $6.0 billion in the first quarter. The figure would mark an increase of 32.6% YoY compared to $4.5 billion in the first quarter of 2019. Also, analysts expect the company to report an adjusted EPS of -$0.16 in the first quarter compared to -$1.77 in the first quarter of 2019. Currently, analysts expect a 17.2% and 34.3% rise in the company’s 2020 and 2021 revenues, respectively. Analysts also expect an adjusted EPS of $3.72 and $11.40 in 2020 and 2021, respectively.
Tesla stock performance
Tesla stock closed 3.5% below its 20-day moving average of $497.28 on April 3. However, the stock was 25.9% and 9.2% below its 50-day and 100-day moving averages of $647.38 and $528.79, respectively. Tesla’s 14-day MACD is 2.09, which indicates an upward trading pattern. With a 14-day RSI (relative strength index) score of 42, the stock isn’t oversold or overbought.
Tesla has an upper Bollinger Band level of $647.00. The company’s middle Bollinger Band level is $502.48, while its lower Bollinger Band level is $357.96. On April 3, Tesla stock closed near its middle Bollinger Band level, which also indicates that it isn’t oversold or overbought.
Currently, Tesla stock is trading at 129.04x its fiscal 2020 estimated EPS of $3.72. The stock is trading at 42.12x its fiscal 2021 estimated EPS of $11.40. Analysts expect Tesla’s earnings to grow at a CAGR of 35% over the next five years.
Read Tesla’s Q1 Deliveries: Another Jolt for Short Sellers and Tesla Stock Short Sellers Are Once Bitten, Twice Shy! to learn more. You could also read Why Tesla Stock Can Survive the Coronavirus Scare.