Tesla, Inc. (NASDAQ:TSLA) has been in the spotlight lately due to its unique nature of designing, developing, manufacturing and selling fully electric vehicles and energy generation and storage systems. While the company is admired for its innovative products and services that benefit the environment, it is also a subject of great controversy among investors. According to Bloomberg Ratings reports, Tesla shares have earned a consensus recommendation of “Hold” from 41 research firms covering the firm.
Out of the 41 firms, four equities research analysts have rated TSLA stock with a sell rating, sixteen with a hold rating, and nineteen with a buy rating on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $217.26.
Despite some analysts holding out on Tesla’s future prospects, institutional shareholders seem to be putting their faith in Elon Musk’s company. Vanguard Group Inc., State Street Corp, Geode Capital Management LLC, Price T Rowe Associates Inc., MD and Jennison Associates LLC all hold significant stakes in TSLA.
Vanguard Group increased its stake in Tesla by 212.2% last year alone while State Street Corp increased its holdings by over 200%. Jennison Associates holds close to 30 million shares worth nearly $8 billion following a huge increase during Q3 of last year as well.
Tesla’s success has been attributed to Musk’s ability to think big and bring this vision to life. His passion for innovation has led him down many paths often dismissed as impossible by traditionalists in the business world which have resulted in remarkable achievements like sustainable electric vehicles that run solely on electricity derived from renewable energy sources.
While Tesla may face opposition from those skeptical about its long-term viability given ongoing legal battles related suing SolarCity buyout and an alleged whistleblower case involving shoddy production practices at its Gigafactory site – it doesn’t seem like institutional investors are too concerned. Judging by the substantial investments made by key players like Vanguard and State Street, it appears that they believe in Tesla’s ability to keep innovating and expanding its product line.
Predictably, Tesla bears reject this optimistic viewpoint, but for now, it seems safe to say that Tesla’s future is a subject of great debate. For those who wish to put skin in the game, there are plenty of viewpoints both positive and negative on this electrified automotive maverick’s stock performance which may make it an attractive option for investors willing to do their homework.
Analysts Weigh In on Tesla’s Stocks and Future Prospects
Tesla remains a hot topic among analysts as reports continue to be released, showcasing varying opinions on the electric vehicle manufacturer’s stocks. Some analysts have lowered their price targets for Tesla, while others have increased them. On Friday, January 27th, Argus dropped their price target for Tesla shares from $374.00 to $257.00 with a “buy” rating for the company. Conversely, on Monday, February 6th Royal Bank of Canada increased their price objective on Tesla shares from $186.00 to $223.00 with an “outperform” rating.
Tesla’s latest quarterly earnings data revealed impressive results, with the company outperforming the consensus EPS estimate and reporting revenue of $24.32 billion – surpassing estimates by $0.06 billion. As Tesla forges ahead in its efforts to become a leading innovator in green energy and electric vehicles, positive financial performance is certainly reassuring.
Despite this success though, figures continue to fluctuate within the market with insiders selling substantial amounts of stock over recent months – around 25% of the stock is now owned by corporate insiders which could cause concerns amongst stockholders.
Nonetheless, Tesla remains committed to further developing its clean energy production and electric vehicles segments; indeed the company has a strong focus on sustainability and reducing carbon emissions through its products throughout transport solutions down to people’s homes through battery storage solutions.
The volatility witnessed in recent times seems set to continue, but there are many investors who believe that buying into Tesla will pay dividends in the long term as they continue supporting and investing in important future-focused technologies such as fully electric vehicles and sustainable energy generation/storage solutions to combat climate change as society becomes increasingly concerned about environmental issues driving demand forward for companies like them.