Tesla: Analyst Price Targets from $53 to $380

Last Updated: 14. November 2023By

Would you buy a Tesla? It looks like the pioneer has become a hunted one. With the vision of making sustainable electric cars, the company became known worldwide. But since then, a lot of competitors have joined the electric car market. Could the 3rd quarter also be ended positively?

Tesla misses expectations In the 3rd quarter, the company reported an adjusted earnings per share of 0.66 US$, down from 1.05 US$ in the previous year. Analysts had expected 0.73 US$. Revenue for the quarter was 23.35 billion US$, compared to 21.45 billion US$ in the same period last year. Analysts had expected 24.14 billion US$.

Tesla to further reduce production costs “While production costs in our new factories continue to be higher than in our established factories, we made the necessary upgrades during the third quarter to further reduce unit costs,“ the company said.

Further investments of billions planned For the year 2023, the company expects capital expenditure of more than 9 billion US$. Analysts expect 8.51 billion US$. For the years 2024 and 2025, the electric car manufacturer expects capital expenditure of between 7 and 9 billion US$. Analysts expect 9.17 billion US$ for 2024 and 9.91 billion US$ for 2025.

Analysts‘ price targets are widely divergent Conclusion: As you can see from the chart above, investors were not satisfied with the quarterly figures. After a strong start to the year, the auto stock is now in a downtrend. As controversial as Tesla founder Elon Musk, so different are the price targets of the analysts. 20 of 46 analysts recommend buying, 19 want to hold and prefer to sell. And now please hold:

The lowest analyst price target is a whopping 53 US$ – a huge potential downside of -80%. The average analyst price target is 240 US$ and the highest analyst price target is 380 US$. I have rarely seen such a wide range of price targets, which brings me to this assessment: sometimes it is better to keep your fingers off a stock.