Bernstein on Tuesday downgraded Tesla (TSLA) to Sell from Hold, saying that its high valuation is “mind-boggling” and “difficult to justify”.
At the same time, Bernstein analyst Toni Sacconaghi left the stock’s price target unchanged at $900 (42% downside potential). The analyst stated that “its EV has now matched Toyota and Volkswagen combined (who collectively make 20M cars vs. Tesla at 500K) and is up nearly 500% in less than a year – unprecedented for a large cap stock outside of the tech bubble.” As a result, “Tesla now even looks expensive vs. large cap growth tech,” he added.
Last week, the electric car maker reported higher-than-expected 2Q earnings, after which Piper Sandler analyst Alexander Potter raised his price target to $2,400 from $2,322. Potter reiterated a Buy rating on Tesla and believes that the stock “deserves ‘must own’ status.”
Currently, the Street has a Moderate Sell analyst consensus on the stock with 13 Holds, 12 Sells and 4 Buys. The average price target of $1,257.04 implies downside potential of 18%. (See TSLA stock analysis on TipRanks).