Tesla Inc (TSLA: NSD) recently faced scrutiny following reports of scarping the lower-priced Model 2. Even as this decision came at the heels of a disappointing sales quarter, Morgan Stanley has started questioning Tesla’s future prospects.
Stock Target Advisor’s Say About Tesla:
Stock Target Advisor gives Tesla’s current stock price sits at USD 164.90. Despite the current turbulence in Tesla’s operations, the stock retains a “Buy” rating and is expected to reach a target price of USD 250.56 within 12 months. This projection indicates a price change of approximately 51.94%.
28 analysts currently cover Tesla with a collective average rating of “Buy”. The average analyst target price stands at USD 235.49, with the maximum average target price touching the USD 380 mark and the minimum average target price recorded at USD 85.
Within the Exchange “NSD”, under the Auto Manufacturers sector, Tesla holds a “Slightly Bearish” rating from Stock Target Advisor. Despite the current Model 2 dilemma, this sentiment is relatively positive compared to the average returns for the sector.
Does Tesla’s Performance Stand Strong Despite Model 2 Issues?
Delving deeper into Tesla’s performance, the trailing 12-month returns reveal a capital gain of -10.89%, placing the company at the 83.33% percentile ranking in its sector for capital gain.
Looking at the 5-year growth analysis, Tesla’s revenue growth stands at an impressive 350.92%, with earnings growth touching a phenomenal 1636.64%.
Furthermore, profitability ratios for Tesla paint a fairly positive picture. The return on Assets stands at 5.88% while the Return on Equity is at 27.35%. The Debt Equity ratio is relatively low at 4.28%.
Conclusion:
While the Model 2 scrutiny has painted a temporary cloud of uncertainty, the long-term potential of Tesla Inc. remaining largely untouched. However, investors must be cautious of the company’s high volatility and closely track the development around Model 2.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
