Analyst Reveals New Tesla Price Target

Analyst Reveals New Tesla Price Target

Tesla (TSLA) – Get Free Report shares extended their recent run of declines Monday, which have lopped more than $230 billion from the EV maker’s market value so far this year, after another Wall Street analyst questioned the group’s near-term profit path.

Tesla has lagged its Magnificent 7 peers for much of the past six months thanks in part to a risky strategy that prioritizes market-share gains over improving profits. The strategy has been driven by a series of price cuts across key markets in the U.S., Europe and China.



The Roundhill Magnificent Seven ETF, which trades under the ticker symbol MAGS, has risen nearly 12% so far this year, while Tesla shares are down nearly 25%. Meta Platforms (META) – Get Free Report, whose CEO Mark Zuckerberg was challenged to a cage match last year by Tesla’s Elon Musk, is up nearly 40%.

Tesla’s profit margins, probably the most closely tracked metric by analysts on Wall Street, narrowed to 17.6% over the three months ended in December. That’s as a result of the price cuts and, alongside a weaker-than-expected bottom line of 71 cents a share, added more fuel to those betting against the world’s biggest EV maker.

Piper Sandler: ‘aging product lineup’ at Tesla



Piper Sandler analyst Alexander Potter, meanwhile, sees more price cuts ahead thanks to what he calls an “aging product lineup.” He also trimmed his 2024 delivery estimate by around 11.5%, to 1.93 million units, following the group’s disappointing fourth- quarter earnings, reported last month.

Tesla’s net income doubled from fourth-quarter 2022 to $7.9 billion, but a good chunk of that was tied to a deferred tax gain of $5.9 billion. Costs linked to artificial-intelligence projects and the delayed Cybertruck pickup-truck launch ate deep into its bottom line.

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