Bernstein remains ‘torn’ on Tesla stock following quarterly results

Bernstein analyst Toni Sacconaghi believes Tesla’s Q4 results and earnings call offered something for bulls and bears. For bulls, the growth story is alive and well, while for bears, the numbers don’t lie, with auto gross margins were much worse than anticipated. Bernstein remains "torn on TSLA‘s stock." On one hand, the stock is now trading at close to around its price target and 2050 DCF, Tesla appears to have created demand elasticity, and the company has a forthcoming analyst day on March 1. That said, it is unclear if consensus numbers will get reset sufficiently and whether Tesla could still struggle with demand issues over the course of the year, the firm argues. Recent demand challenges also raise questions on whether long term forecasts for Tesla’s market share and margins may be too high, it adds. Bernstein has an Underperform rating on the shares with a price target of $150.