Tesla consensus estimates ‘too high,’ says Bernstein

Bernstein made no change to the firm’s Underperform rating and $150 price target. The firm, which calls Tesla its top short idea, tells investors in a research note that 2023 has been very difficult for Tesla at a fundamental level, with 2023 EPS ~50% below consensus estimates at the start of the year, but the stock has nearly doubled year-to-date. Bernstein argues that Tesla’s key challenge is that it has a demand problem due to its narrow and expensive product family of essentially two vehicles and believes consensus estimates are too high.