Instability Aside, Analysts Give TSLA a Moderate Buy Rating

Instability Aside, Analysts Give TSLA a Moderate Buy Rating
  • At least 30 Wall Street analysts presently offering 12-month price targets on Tesla stock.
  • Over the last three months have given an average price target of $867.41
  • This would be the median, between the high forecast of $1,580 and a low forecast of $67
  • This represents a change of +14.11 percent from the last price of $760.00

The Latest Financials

Everything is looking up for Tesla (NASDAQ: TSLA), in terms of financials. First of all, earnings per share in 2020 was $0.74 on revenue of $31.54 billion, which was up 28.31 percent. This follows into 2021 where EPS grew 656 percent, to 5.6 on revenue of 53.82 billion, an increase of just about 71 percent.

For 2022, revenue growth is expected to continue climbing, to close the year in the $87.33 billion range; that is an increase of more than 62 percent. Following this, Earnings Per Share is further expected to grow another 121 percent, to $12.35. Similar EPS growth is expected in 2023, 2024, and 2025, at 31 percent, 12 percent, and 20 percent, respectively.

Overall, quarterly reported earnings growth is 40.85 percent down, after four straight booming quarters. At the same, reported sales are down more than 11 percent, which might explain the dip in earnings. Adversely, though, annual reported earnings and annual reported sales are up 70 and 57 percent, respectively.

Tesla Stock Makes Big Moves Up And Down

Tesla went public on the Nasdaq stock exchange in 2010. For its Initial Public Option, Tesla's founder Elon Musk made available 13,300,000 shares at the IPO price of $17 per share. Stock value grew very slowly, finally seeing some major spiking in 2013. While activity calmed down for a little while, the cyclic highs and lows continued quite steadily until February of 2020, when a frenzy of activity sent the stock soaring. By November 1, 2021, Tesla shares hit their highest value of $1,222.09.

Unfortunately, nearly as quickly as stock value rose, Tesla shares have been falling since that peak. Following a similarly dramatic cycle of highs and lows as has been its trend, Tesla stock has dipped and then recovered again, to now sit at its present price.

A big part of Tesla's recent value crash has a lot to do with Elon Musk backtracking his support of Bitcoin, particulalrly as a payment option for Tesla vehicles, early in 2021. Barely two months later, he reversed his stance by announcing Tesla would no longer accept the cryptocurrency as a form of payment. He followed this up by explaining that it requires an immense amount of energy to mine the currency.

Since that time, though, share price has been mostly on the rise. In fact, Tesla's positive momentum—not to mention wide value range—could just be the beginning of a steady rally. And that means the value will certainly go up. But, again, with its history of frequent dynamics—and, again, its wide value range—the stock might not be right for those who want something a little more stable. For these reasons, analyst consensus is that TSLA stock is a MODERATE BUY.

Tesla: A History

Founded on July 1, 2003 by a group of engineers in San Carlos, CA who were committed to making electric vehicles better, faster, more fun to drive and, more importantly, more accessible to everyone. Today, of course, Tesla builds not only several models of electric vehicles, but they have also been somewhat of a leader in infinitely scalable clean energy generation and storage. Indeed, Tesla believes that the world would certainly benefit from transitioning away form fossil fuels and focusing on zero-emission options.

It took five years from company concept to product release, as Tesla unveiled the Roadster in 2008. This introduced the world to Tesla's state-of-the-art battery technology and powerful electric powertrain. This led to the first premium, fully-electric sedan built from the ground up—the Tesla Model S—which quickly rose to become the best car in its class in every possible category

By 2015, Tesla expanded its initial product line by introducing the Model X. The Tesla Model X is described as the safest, quickest, and most capable sport utility vehicle ever made; and its 5-star safety ratings in every category certainly backs up the claim. This led to the launch of the lower-priced, high-volume, all-electric Model 3, in 2016, followed by the safest and most comfortable truck ever designed, the Tesla Semi. Finally, Tesla unveiled a mid-sized SUV—the Model Y—with seating for seven; and then also the Cybertruck.

Companies in This Article:

CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)$873.00+2.7%N/A105.18Hold$856.23

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