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Tesla Share Price Does Not Reflect Long-Term Opportunities, Says Analyst

Sam Boughedda
Sam Boughedda trader
Updated 6 Jan 2023

Tesla (NASDAQ: TSLA) shares fell a further 2.9% in Thursday’s session as US indices declined following a positive start to the year.

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The decline occurred as US jobs data increased fears regarding further Federal Reserve rate hikes, resulting in Tesla resuming its recent share price decline, which means it is now down over 71% in the last 12 months.

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The move is despite a note from Edward Jones analyst Jeff Windau, upgrading the stock to Buy from Hold, adding it to the “Edward Jones Stock Focus List.”

Windau noted that Tesla shares have “declined significantly” due to slowing economic growth concerns and Musk’s seeming focus on Twitter.

However, in his research note, the analyst stated that his firm feels in the near term, slowing growth will impact vehicle sales, and the electric vehicle market will “continue to expand due to global regulations.”

He argued that the share price of Tesla does “not reflect its long-term growth opportunities” in the growing electric vehicle market and that new products and technologies should help to improve its profitability.

Nevertheless, Windau’s sentiment was not shared by Mizuho analyst Vijay Rakesh, who lowered his firm’s price target on Tesla to $250 from $285, maintaining a Buy rating on the stock.

Rakesh said in his note to investors that the company reported December quarter deliveries of 405,300 vehicles, below the consensus estimate of 418,000. However, he believes this was mainly expected due to the week-long Shanghai shutdown.

In addition, the analyst said a weak macro environment along with a “stressed” consumer, declining affordability, rising rates, and slowing auto sales are challenging for the electric vehicle giant.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.