September has proven to be a significant month for Tesla Motors (NASDAQ: TSLA), the electric vehicle (EV) maker helmed by Elon Musk, even with a remarkable 22.52% increase in its stock over the last 30 days.
The surge in TSLA shares, which recently closed at $258.02, has largely been fueled by conversations surrounding the company’s self-driving capabilities and the upcoming ‘Cybercab’ event.
With this event on the horizon and insights into future deliveries prompting several prominent analysts to update their projections for TSLA, Finbold has compiled their latest assessments to help investors gain perspective on what the next year might hold for the EV manufacturer.
Wall Street Analysts Establish Tesla Stock Price Projections for the Coming Year
Although advancements in full self-driving (FSD) technology have stirred optimism on Wall Street, some of Tesla’s anticipated difficulties throughout 2024 have tempered the overall expert outlook on the company’s stock.
As of October 2, 2024, TSLA shares have been assigned a ‘neutral’ rating on the stock analysis platform TipRanks. Out of 35 analysts surveyed, 16 view Tesla as ‘neutral,’ 12 recommend buying shares, and 7 suggest selling.
The consensus for the 12-month price target is slightly pessimistic, indicating a potential decline of 18.26% to a value of $210.91 in that timeframe.
The most bearish forecast comes from well-known Tesla skeptic Gordon Johnson of GJL Research, predicting the stock could fall to $24.86.
On the other hand, a more optimistic outlook foresees a substantial rise to $310, as forecasted by Piper Sandler on September 26, driven by favorable expectations for third-quarter delivery numbers.
Additionally, while he did not specify a price target, Dan Ives from Wedbush conveyed his bullish perspective on September 30, labeling Tesla as the most undervalued company in the artificial intelligence (AI) sector.
Analysts Remain Cautious Despite Optimism Surrounding Tesla’s ‘Cybercab’
Reflecting broader sentiments, the latest ratings on Tesla stock present a mixed picture.
Cantor Fitzgerald maintained its ‘neutral’ rating on September 30, setting a target of $245 for the next year, while Wells Fargo (NYSE: WFC) expressed a more negative viewpoint, forecasting a 50% decline to $120.
Wells Fargo analysts noted expectations of reduced factory growth due to declining demand, also highlighting potential downside pressure from Tesla’s price cuts.
Conversely, Barclays took a cautiously optimistic position on September 30, placing a target of $220 on TSLA stock while assigning an ‘equal weight’ rating.
Tesla Q3 Deliveries Expected to Have Minimal Impact on Analysts’ Stance
Despite the upbeat projections from firms like Piper Sandler, Tesla’s Q3 delivery report is not expected to significantly alter the prevailing cautious outlook. The EV manufacturer fell short of projections, announcing just prior to the October 2 market opening the production of 469,796 vehicles and the delivery of 462,890.
While the shortfall was slight—the expectation was set at 463,310 vehicles for the quarter—it still had an immediate effect, resulting in a 4.44% drop in the 30-day chart, bringing the stock price down to $246.56 in pre-market trading on Wednesday.
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