In a report released today, Gordon Johnson from GLJ Research maintained a Sell rating on Tesla, with a price target of $19.05.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Gordon Johnson has given his Sell rating due to a combination of factors that he believes will impact Tesla’s future performance. Despite the anticipation of strong Q3 results, Johnson is concerned about the sustainability of Tesla’s current sales mix, which is temporarily boosted by U.S. deliveries ahead of a tax credit expiration. This demand pull-forward may not continue, potentially leading to a decline in future sales.
Additionally, while Tesla’s energy storage segment shows promise, Johnson is wary of the company’s reliance on optimistic narratives from Elon Musk to drive stock performance. He suggests that the market’s reaction may be more influenced by Musk’s storytelling rather than the actual financial results, which could pose risks for investors. As a result, Johnson maintains a cautious outlook, advising a Sell rating on Tesla’s stock.
In another report released on October 16, Exane BNP Paribas also initiated coverage with a Sell rating on the stock with a $307.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is neutral on the stock.