Despite its impressive 22.52% rise over the past 30 days, September has been eventful for Tesla Motors (NASDAQ: TSLA), the electric vehicle (EV) company led by Elon Musk.
The main focal point driving the rally in TSLA shares to their most recent closing price of $258.02 has revolved around discussions about the company’s self-driving technology and the anticipated ‘Cybercab’ event.
With the upcoming event and deliveries preview prompting several notable analysts to revise their forecasts for TSLA stock, Finbold has looked into their latest insights to assist investors in understanding what lies ahead for the EV manufacturer in the next year.
Street experts set Tesla stock price target for the coming 12 months
Initially, while developments in full self-driving (FSD) technology have fostered a sense of optimism on Wall Street, Tesla’s challenges throughout 2024 have somewhat dampened the expert consensus regarding the company’s stock.
As of October 2, 2024, TSLA shares have received a ‘neutral’ rating on the stock analysis platform TipRanks. Among the 35 analysts surveyed, 16 hold a ‘neutral’ stance on Tesla, 12 advocate for buying the stock, and 7 recommend selling.
The consensus 12-month price target also leans slightly bearish, anticipating a decline of 18.26% to reach $210.91 within the given time frame.
The most pessimistic projection, attributed to well-known Tesla critic Gordon Johnson of GJL Research, would see the stock plunge to $24.86.
Conversely, a more optimistic forecast suggests a significant upswing to $310, a prediction made by Piper Sandler on September 26, based on positive expectations for third-quarter delivery figures.
Additionally, while he did not specify a target, Dan Ives from Wedbush expressed his bullish sentiment on September 30, labeling Tesla as the most undervalued artificial intelligence (AI) firm in the market.
Experts cautious despite Tesla ‘Cybercab’ optimism
Similar to broader projections, the most recent ratings on Tesla stock have been mixed.
On September 30, Cantor Fitzgerald reiterated its ‘neutral’ rating and maintained a $245 forecast for the next 12 months, while Wells Fargo (NYSE: WFC) took a more bearish stance, projecting a 50% drop to $120.
Wells Fargo analysts explained that they foresee lower factory growth stemming from diminishing demand, also noting potential downward pressure due to Tesla’s price reductions.
Lastly, Barclays offered a cautiously optimistic view on September 30 by establishing a TSLA stock price target of $220 and giving the company an ‘equal weight’ rating.
Tesla Q3 deliveries unlikely to sway analysts
Despite the bullish outlook suggested by firms like Piper Sandler, Tesla’s Q3 report is unlikely to change the prevailing cautious consensus significantly. The EV manufacturer fell short of expectations, as it announced just before the October 2 market opening that it had produced 469,796 vehicles and delivered 462,890.
Although the miss was minor – with expectations set at 463,310 vehicles for the quarter – it had an immediate impact, leading to a 4.44% decrease in the 30-day chart, bringing the stock to $246.56 in pre-market trading on Wednesday.
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