Analyst Coverage Change
Berenberg Bank on January 30th, issued a research report upgrading its recommendation for Tesla’s stock to a “Buy” rating from a “Hold” rating. The target price for the stock has been reduced from $235 to $200 per share, reflecting Berenberg Bank’s revised estimate of its future value.
Tesla Stock Forecast & Analysis
According to 41 analyst forecasts for Tesla Inc., the average target price for the stock over the next 12 months is USD 258.65. The average analyst rating for the company is “Strong Buy”. Stock Target Advisor’s own analysis of Tesla Inc. is “Slightly Bullish,” based on 9 positive signals and 6 negative signals. As of the last closing, Tesla Inc’s stock price was USD 177.90. The stock’s price has seen significant changes in recent times, rising by +33.34% in the past week, +46.04% in the past month, but declining by -36.94% over the past year.
Musk Cites Strong Demand
Elon Musk addressed concerns regarding the recent price cuts on Tesla cars in China and the US. These cuts raised fears of a demand problem as the global economy is expected to decline this year. During the fourth quarter earnings call, Musk reassured investors that demand has been strong and that they have seen the strongest orders ever in January. The Model Y price was even raised due to high demand. Musk is optimistic about the demand for Tesla vehicles and believes lowering prices will increase demand and allow the company to reach a wider customer base. He stated that demand will be good despite a contraction in the automotive market and that affordability is important for the average consumer.
Tesla, Inc. is an American multinational corporation that specializes in electric vehicles, energy storage and solar panel manufacturing based in Palo Alto, California. The company was founded in 2003 by entrepreneur Elon Musk with the goal of reducing the world’s dependence on fossil fuels. Tesla designs, develops, manufactures, and sells electric cars, trucks, and energy storage solutions. The company’s Model S, Model X, and Model 3 vehicles are among the first mass-market electric cars. Tesla’s mission is to accelerate the world’s transition to sustainable energy.