For a while, Tesla (NASDAQ:TSLA) looked like the darling of the electric vehicle market. In many ways, it still is. However, the recent troubles with Elon Musk’s takeover of Twitter and a souring macro environment have left some wondering if Tesla can ever recover. Tesla was up solidly in trading on Wednesday, but some analysts are questioning if that uptick is sustainable.
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Wedbush, by way of analyst Daniel Ives, suggested that the slump Tesla experienced recently may not be temporary. That’s particularly true if Tesla isn’t helmed by a fully-involved Elon Musk, who drew a lot of interest with his particular grade of visionary expertise. Moreover, despite gains seen in the Chinese electric vehicle market overall, Tesla’s share of it may decline as the Chinese consumer starts to retract in the face of a souring macroeconomic picture. Though China’s reopening will likely help, it may not help enough for Tesla.
Ives isn’t the only one looking askance at Tesla. Fundstrat’s Mark Newton notes that, while Tesla is currently “oversold,” there aren’t any signs of a bottom as yet. However, there are positive signs as well. Cathie Wood continues to buy Tesla shares for the ARK Innovation Fund (ARKK), and Tesla also plans to expand its product line. Tesla recently filed paperwork to make electric motors “not for land vehicles.” What does that mean? That means motors for everything from airplanes to boats and even for toys.
Wall Street still supports Tesla, at least within reason. Analyst consensus calls Tesla stock a Moderate Buy. Further, the stock has 129.34% upside potential thanks to its average price target of $257.96 per share.
