Is Tesla stock Overvalued?
Equally, the all-important price-to-earnings-to-growth (PEG) ratio is 3.6 for TSLA. This is by no means an enticing ratio, and it infers that Tesla stock is overvalued considerably.
Tesla Inc (TSLA) stock is up about 10% from its recent lows last month, and TSLA still looks undervalued here based on its FCF. Its put option premiums are still high, which is good for short-put plays for income.
- Wingstop WING.
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- Vistra VST.
- Dell Technologies DELL.
But they remain in high demand. One reason why the price is so high is that demand is strong. Expanding production capacity and building new factories may help moderate prices. The other main reason why Tesla's prices are high is the high cost of the electric battery packs that power these vehicles.
“Tesla first quarter 2024 [is] likely the bottom,” wrote New Street Research analyst Pierre Ferragu in a Thursday report. He expects first-quarter deliveries to come in around 420,000 units, but also expects delivery growth and a recovery in profit margins later in 2024. Investors hope that's the case.
Is TSLA a Buy, Sell or Hold? Tesla has a conensus rating of Hold which is based on 8 buy ratings, 19 hold ratings and 7 sell ratings. The average price target for Tesla is $184.86. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Analyst Forecasts
Currently, 32 Wall Street analysts follow Tesla stock, and they have a consensus “buy” rating on the company. Their average 12-month price target is $207.30, marking a potential gain one year out of about 27%.
| Symbol | Name | Price (Intraday) |
|---|---|---|
| UA | Under Armour, Inc. | 6.30 |
| AEM | Agnico Eagle Mines Limited | 62.49 |
| YUMC | Yum China Holdings, Inc. | 36.88 |
| URBN | Urban Outfitters, Inc. | 37.07 |
| Symbol Symbol | Company Name | Float Shorted (%) |
|---|---|---|
| BACK BACK | IMAC Holdings Inc. | 94.74% |
| XTIA XTIA | XTI Aerospace Inc. | 78.91% |
| SPWR SPWR | SunPower Corp. | 76.64% |
| BCAN BCAN | BYND Cannasoft Enterprises Inc. | 75.67% |
Amazon's performance remains strong, with robust earnings and reasonable valuation metrics suggesting the stock is not overvalued.
Will Tesla stock go up 2024?
Tesla (TSLA) stock is angling lower in 2024, falling around 30% as analysts project 2024 vehicle deliveries could undercut last year's total with profit forecasts continuing to fall ahead of first-quarter earnings.
The next decade is going to be a tougher slog than the last 10 years. Tesla won't be a bust like Rivian and Lucid but I don't see it outperforming the market either. The share price will have to come down significantly from these levels to make TSLA stock a buy.
With the cut, 35% of analysts covering Tesla stock have Buy ratings. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Tesla stock is about $190, down from about $241 at the start of 2024.
| Month | Min Price, $ | Change |
|---|---|---|
| May 2025 | 149.729 | -5.59 %▼ |
| June 2025 | 153.644 | 2.66 % ▲ |
| July 2025 | 157.683 | 1.35 % ▲ |
| August 2025 | 158.568 | 0.48 %▼ |
Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.
We forecast that Tesla's deliveries will be roughly flat in 2024 versus 1.8 million in 2023. We anticipate lower average selling prices, as Tesla will likely have to cut prices in key markets like China, in line with peers. We forecast automotive gross margins will be 18% in 2024, in line with 2023 results.
Average Price Target
Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $184.86 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a 17.00% change from the last price of $158.00.
Tesla Stock Forecast
The 30 analysts with 12-month price forecasts for Tesla stock have an average target of 195.1, with a low estimate of 22.86 and a high estimate of 310. The average target predicts an increase of 25.51% from the current stock price of 155.45.
| Average Recommendation | Hold |
|---|---|
| Average Target Price | 193.80 |
| Number Of Ratings | 51 |
| FY Report Date | 12/2024 |
| Last Quarter's Earnings | 0.71 |
Wall Street consensus has 2024 Tesla earnings firmly below 2023's level. That signals another year of earnings declines for this growth stock. Wall Street currently expects Tesla earnings per share of just $2.70 in 2024, according to FactSet. That would be more than a 13% decline vs. last year's $3.12.
Does Tesla have a strong future?
Tesla is set to remain the leader in the EV industry. If Tesla develops groundbreaking technologies, its business could look different 10 years from now. The stock still carries a premium valuation.
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
| Symbol | Holdings | |
|---|---|---|
| Paramount Global Class B | PARA | 63,322,491 |
| Sirius XM Holdings Inc | SIRI | 40,243,058 |
| Snowflake Inc | SNOW | 6,125,376 |
| SPDR S&P 500 ETF Trust | SPY | 39,400 |
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
| Chevron Corp. (CVX) | Energy | 3.9% |
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