1 Wall Street Analyst Thinks Tesla Stock Is Going to $125. Is It a Sell?
(NASDAQ: TSLA) did its part in the "Magnificent Seven" in 2023, playing an outsized role along with the other six stocks in driving the market higher. In 2024, its role appears much diminished as the stock is down. It might have even further to fall in the near term as sentiment about Tesla is turning negative. Wells Fargo analyst Colin Langan recently downgraded the stock to the equivalent of a sell rating and cut his firm's price target to $125.
Langan previously had a hold rating on Tesla with a price target of $200 per share. Tesla shares have already dropped roughly 30% in 2024 as lagging demand and competition for electric vehicle (EV) buyers have eroded profits.
If Langan is right, Tesla shares will reach a level last seen in January 2023. While Tesla continued to ramp up production and sales during 2023, it was also a year of rising competition. That led to price reductions on its electric cars to help spur sales. The result was higher revenue as volume grew compared to 2022, but lower profit margin and free cash flow.
Source Fool.com
Tesla Inc Stock
Currently there is a rather positive sentiment for Tesla Inc with 76 Buy predictions and 50 Sell predictions.
As a result the target price of 225 € shows a positive potential of 31.43% compared to the current price of 171.2 € for Tesla Inc.
