Tesla Inc (TSLA: NSD) faces a period of internal turmoil as CEO Elon Musk prioritizes self-driving car technology over other projects. This shift comes amid a challenging year for the electric vehicle maker, with slumping sales, a declining stock price, and increased competition.
Musk, known for his ambitious goals and abrupt changes in direction, has reportedly put Tesla into “wartime” mode. This has resulted in a 20% workforce reduction and a renewed focus on developing robotaxis, even at the expense of a planned, more affordable electric vehicle.
Stock Target Advisor’s Take on Tesla:
Stock Target Advisor’s gives a Buy rating to Tesla’s stock with a target price is $224.95 and the projected price change for the next 12 months by Stock Target Advisor is 52.97%. At the last closing, Tesla Inc’s stock price was USD 147.05. Tesla Inc’s stock price has changed by -24.00% over the past week, -25.77% over the past month and -10.92% over the last year.
Currently, 28 analysts cover Tesla’s stock and the average analyst target price for Tesla Inc is USD 224.50 over the next 12 months. Tesla Inc’s average analyst rating is Buy. Stock Target Advisor’s own analysis of Tesla Inc is based on 10 positive and 5 negative signals.
Positive signals:
- Superior risk-adjusted returns
- Positive cash flow
- Positive free cash flow
- Superior return on assets
- Superior capital utilization
- High market capitalization
- Superior Revenue Growth
- Superior Earnings Growth
- High Gross Profit to Asset Ratio
- Superior return on equity
Negative signals:
- Overpriced compared to book value
- Overpriced compared to earnings
- High volatility
- Overpriced on cashflow basis
- Overpriced on a free cash flow basis
Bottom Line:
Whether Tesla can overcome these challenges and achieve its robotaxi goals remains to be seen. The company faces an uphill battle in regaining public trust in its autonomous driving technology and meeting its aggressive deadlines.
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.
