Mon, January 30, 2023

Tesla Remains a Wall Street Darling

Tesla Remains a Wall Street Darling

This year has been a struggle for the electric car company. Production problems in China, Twitter CEO Elon Musk’s purchase of the company, his dumping of tens of billions of dollars in his own Tesla stock, and a backlash over that deal. The stock, which had its deadliest year in 2022, has soured on investors.

Analysts who follow the company have been deterred by none of that. According to FactSet, 64% of Tesla’s stock analysts have given it a “buy” or “overweight” rating. According to the data provider, that is the highest share since the end of 2014. Tesla’s price is predicted to be $194 by analysts. On Wednesday, when Tesla reports its fourth-quarter results, investors and analysts will better understand how the company performed in the final three months of the year.

What’s Making Analysts Favor Tesla Stock?

Some feel that, despite its controversy, Tesla is still the most dominant force in the electric-car sector.

In the US, electric vehicle sales increased last year. However, according to market research company Motor Intelligence, auto sales dropped 8%. Although automakers such as Ford Motor Co., General Motors Co., and Hyundai Motor Co. have introduced more electric vehicles in recent years, they continue to lag behind Tesla. Musk’s firm sold 65% of all electric automobiles in the United States. According to Motor Intelligence, last year was a record year.

Others believe the company’s potential for future expansion has declined too much. Even so, experts agree that Tesla’s stock isn’t out of the woods.

Like many other fast-growth companies, Tesla rose during the pandemic before collapsing last year due to an increase in inflation that prompted the Fed to raise interest rates immediately. Investors have become more optimistic that the Fed will shift from rate increases to rate cuts in the second half of this year, however, in recent weeks. Several growth businesses have benefited from this resurgence, including Tesla. Compared to the S&P 500, which posted a 3.5% gain this year, shares are up 8.3%.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its