It would not be wrong to call 2022 the worst year for Tesla (NASDAQ:TSLA) shareholders. Shares of this Electric Vehicle (EV) maker slumped over 65%, eroding shareholders’ wealth. Nevertheless, Cathie Wood of ARK Innovation Fund (NYSEARCA:ARKK) continues to show faith in TSLA stock and expects a multi-fold jump in its price in the next five years.
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Wood expects Tesla’s price cuts to hurt competitors and drive its market share. Further, the secular industry trends provide a solid base for long-term growth.
Along with Wood, several other fund managers are also optimistic about TSLA’s prospects. Our data shows that hedge funds amassed 1.2M shares of Tesla last quarter.
While the U.S. fund managers remain bullish, a South Korean EV-focused mutual fund lowered its holdings in TSLA stock. The EV-focused fund cited volatility, increased competition, and Tesla’s unattractive valuations as major factors for reducing exposure in the stock.
Against this background, let’s check what analysts say about Tesla.
Is Tesla Stock a Buy, Sell, or Hold?
Most Wall Street analysts are bullish about Tesla regardless of the near-term headwinds. Jefferies analyst Philippe Houchois recommends a Buy on TSLA stock. Houchois said the EV giant “has more levers to pull than any OEM [Original Equipment Manufacturer] given starting margins, capacity and opportunities to leverage growth into cost and revenue management.”
Including Houchois, 20 analysts recommend a Buy on Tesla stock. Meanwhile, nine analysts suggest a Hold rating, while three maintain a bearish outlook.
Overall, Tesla sports a Moderate Buy consensus rating on TipRanks. Furthermore, analysts’ average price target of $223.04 implies an upside of 75.39% based on the closing price of $127.17 on January 19.
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