The last time Tesla Inc. (NASDAQ:TSLA) shared quarter earnings was on Wednesday, the 2nd of August. Company stock stood below $347 after the performance reveal. Since then, the electric car maker has climbed to surpass the all-time $386 high reached during the second fiscal quarter. Price targets as high as $430 are set for TSLA stock, but the overall consensus is not so bullish.
In fact, current losses in share value are only a taste of the massive downside awaiting Tesla Inc. This is according to research reports predicting drops in value to points as low as $210.
The confidence which let Tesla beat its all-time high this week dropped by a lot in just two days. The effect came from comments by leading analysts. This week began with several warnings to investors about the likely downsides of investing NASDAQ:TSLA. However, the revelations do not come as a surprise to a host of hedge funds and brokerages.
The following investment and research corporations are not too fond of where Tesla Inc. stock stands right now.
A lot of confidence was found in Tesla Inc. this quarter. It has been a great quarter, too. There is the new Model 3, new Superchargers, production ramp assurances, half a million reservations for a car it cannot push out fast enough yet, and, a new semi truck is in the works. The list seems endless. A better question might be “what isn’t the energy/auto company doing these days?”
The answer: not pulling wool over the eyes of these investment firms.
Tesla Inc. got a reiterated “underweight”rating from Barclays PLC last week. The investment company puts a $210 price objective on a stock sitting at $372 at the time of this post’s release. This would mean a $162 downside still awaits shares. However, the hedge fund is a lot more confident than it was before. The current price objective came up significantly from $165.
Goldman Sachs would rather have investors dispose their stake in NASDAQ:TSLA. Wednesday, the 5th of July, had the company slap a “sell” rating on the Elon Musk business. Sachs expects Tesla Inc. stock to come down to $180. The sky-high climb of the second quarter did not impress Goldman Sachs either. The current price target is even less than its previous object of $190.
Sanford C. Bernstein claims to be indifferent to the stock’s performance. After a “neutral” rating slapped on NASDAQ:TSLA, the hedge fund gives Tesla a price objective of $265. This leaves Tesla with more than a $100 dip ahead. The report was given on Thursday, the 27th of July, days before the Model 3 unveiling.
Dumping Tesla Inc. Stock (NASDAQ:TSLA)
Westpac Banking Corp lowered its confidence in Tesla by 33 percent during the second quarter. This is in accordance to an SEC filing made for the period. The end of last quarter sees Westpac with $4.9 million’s worth in NASDAQ:TSLA holdings. The firm sold 6,700 shares over the period March to June. That left it with 13,621 of the electric car maker’s shares by end of the quarter.
However, the above firms do not represent the obvious bullish sentiments thrown at the young automaker. ValuEngine insists that investors wait on their shares in NASDAQ:TSLA. Tesla Inc. stock got moved up from a ”sell” to a “hold” rating . Jefferies Group LLC says otherwise. This week saw the firm give TSLA an “underperform” rating. It also gets a price target of $280.
While it is among the most confident raters of TSLA, Citigroup LLC gives the carmaker a rating of “Neutral”. Its associated price objective is $357. Guggenheim ranks at the very high end of Tesla Inc. stock raters. It considers Tesla a “buy” with a price target of $430.
The company has a market capitalization value of over $62 billion. It started Wednesday trading at $375 before dipping under $370 by mid-day. The last 50 days features NASDAQ:TSLA exchanging hands at an average $354.97. That is about $30 more than the the company’s 200-day moving average of $325.99. Overall, Tesla Inc. is an overpriced “hold”. A survey of 35 research entities reveals stock to have an average price objective of $315. That is a really long way down.
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