Tesla Inc. (NASDAQ: TSLA) has been the subject of much controversy, with Elon Musk defying many conventions of being a chief executive officer, yet he has proven successful. As analysts are shuffling their decks going into the fall, they are updating their price targets on Tesla and reevaluating the company after the vehicle maker conducted a three-for-one stock split this past week. Here is a look at what one of the first analysts is saying.
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To his credit, Musk has often shirked criticism regarding how he runs his business, as opposed to capitulating to convention. In a post-COVID-19 environment, this appears to be a way to move when most are just following the crowd.
So far in 2022, Tesla shares are down roughly 18%, while the S&P 500 is down about 15%. However, the stock is actually up about 23% from the same time last year. Much of this gain has come through the past quarter, with the stock up about 22%.
Deutsche Bank’s Emmanuel Rosner reiterated a Buy rating on Tesla and lowered the firm’s price target to $375 from $1,125 to reflect the stock split.
Rosner came away from a guided tour of Tesla’s new Gigafactory in Berlin with the sense that the company’s new localized vehicle production in Europe “could be a game-changer.” The plan could make Tesla an “even more formidable competitor in the region, while likely boosting the company’s gross margins,” Rosner said in the call. All in, he believes 2023 “could be a pivotal year” for Tesla and continues to view the company “as one of the most attractive stories in the autos sector.”
As of 2021, Tesla had four Gigafactories in operation, with more coming online in the years to come.
Tesla stock was last seen down about 1% to near $285, with a post-split 52-week range of $206.86 to $414.50.
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