After EV maker Tesla (TSLA) saw its stock jump by 29% in September, Barclays (BCS) analyst Dan Levy said that the rally feels similar to the meme stock hype seen in 2020 and 2021. Indeed, in an interview with CNBC, Levy explained that much of the recent excitement came from retail investors who are looking forward to Tesla’s upcoming annual shareholder meeting. While he admits that Tesla has real value, Levy still calls it “the OG meme stock” because so much of its momentum is driven by hype rather than just fundamentals.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Interestingly, Levy pointed out that Tesla’s stock often moves in ways that don’t line up with traditional financial measures and called its price-to-earnings ratio, which is currently at 180x expected 2026 earnings, “nonsensical.” He even suggests that Bitcoin may be a more appropriate comparison than conventional stocks. Other factors, including Tesla’s performance relative to other “Magnificent Seven” tech stocks and rising options trading activity, add to the volatility and boost short-term movements.
Another reason for the rally, according to Levy, is Elon Musk’s renewed focus on Tesla. In fact, Musk recently bought more shares on the open market, and the board’s proposed compensation package is aimed at keeping him committed to the company’s growth. As a result, Levy described Tesla as the “ultimate narrative stock,” where the current car sales are less important than the big dreams investors believe in.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $339.62 per share implies 23.2% downside risk.
