Consensus Analyst Rating: Strong Buy
Average Analyst 12 Month Target: $269
Tesla (TSLA) stock started the year in the deep red, with shares getting hammered after the company released disappointing 4Q 2022 delivery numbers. Despite announcing a record 1.31 million total deliveries for the year, the company only made 405,278 total deliveries in the quarter, falling well short of the 431,117 expected on Wall Street. Deliveries increased by 40% in 2022, also falling short of the company’s 50% target. Two December price cuts for US customers were not enough to boost demand, and the fact that the company built around 440,000 units in the quarter may indicate that supply is now exceeding demand.
Goldman’s Positive Thesis:
While some analysts are less optimistic about Tesla’s future, Goldman Sachs’ Mark Delaney remains bullish on the company. Delaney sees Tesla as “well positioned for long-term growth given its position as a cost and full solution leader in clean mobility/EVs.” He notes that the main points of discussion going forward will be whether or not vehicle deliveries can pick up again (he anticipates that they will, especially starting in 2Q 2023), margins (and how much lower costs can “offset” lower prices), and Tesla’s brand (and how strongly it is linked to its position as the industry leader in clean mobility/EVs).
Delaney has lowered his 2023 delivery estimate from 1.85 million to 1.8 million due to the 4Q delivery data suggesting “weaker near-term demand” than previously anticipated. However, he notes the “potential for the China market to strengthen over the course of 2023 and new credits like the IRA should be a positive.” Delaney believes that Tesla’s strong brand and leadership position in the clean mobility and electric vehicle market will be important factors in its long-term growth.
One of the main reasons for Delaney’s bullish stance on Tesla is the company’s position as a cost and full solution leader in the clean mobility and electric vehicle market. Tesla has a strong brand and is known for its innovative and high-quality electric vehicles. The company has also invested heavily in research and development, which has allowed it to consistently bring new and improved products to market.
Another factor that Delaney sees as positive for Tesla is the potential for the China market to strengthen over the course of 2023. China is a key market for electric vehicles and Tesla has made significant investments in the country, including building a Gigafactory in Shanghai. The company has also benefited from government incentives and subsidies for electric vehicles in China, which have helped to boost demand.
Finally, Delaney notes the potential for new credits like the IRA (Individual Retirement Account) to be a positive for Tesla. The IRA is a retirement savings account that allows individuals to set aside money for their retirement on a tax-deferred basis. The recent passage of the American Rescue Plan Act of 2021 expanded the types of investments that can be held in an IRA, including electric vehicles. This could potentially increase demand for Tesla’s electric vehicles and provide a boost to the company’s sales.
Overall, Delaney remains optimistic about Tesla’s future despite the company’s disappointing 4Q delivery numbers. He sees the company as well positioned for long-term growth due to its strong brand, leadership position in the clean mobility and electric vehicle market, and the potential for the China market to strengthen and new credits like the IRA to boost demand.
Goldman Stock Rating and Target:
Goldman Sachs has maintained its rating on Tesla Motors at “Buy.” The investment bank has also lowered its target forecast for the company from $235 to $205. This means that Goldman Sachs analysts believe that Tesla Motors is a good investment and expect the company’s stock price to reach $205 in the future. It is important to note that target forecasts are subjective and can change based on various factors such as market conditions, company performance, and external events.
TSLA Stock Forecast:
The average target price for Tesla Inc. among 33 analysts is $269.83 in the next 12 months. The average analyst rating for the company is “Strong Buy,” while Stock Target Advisor’s analysis of Tesla Inc. is “Slightly Bullish,” based on 10 positive and 6 negative signals. As of the last closing, Tesla Inc.’s stock price was $113.64. The stock has increased by 0.83% in the past week, decreased by 41.68% in the past month, and fallen by 70.34% over the past year.
Tesla is an electric vehicle (EV) maker based in the United States. The company was founded in 2003 and has since become one of the most well-known and successful EV makers in the world. Tesla’s mission is to accelerate the world’s transition to sustainable energy through the production and sale of electric vehicles and renewable energy products. The company has gained a reputation for producing high-quality, innovative EVs and has a strong brand presence in the market. In addition to its focus on EVs, Tesla also produces and sells solar panels, solar roof tiles, and energy storage systems.