Tesla Stock Analyst Prediction
Tesla, Inc. TSLA shares have been stagnant since the company released its third-quarter earnings report in mid-October. The stock did not budge despite the electric vehicle maker reporting above-consensus deliveries last week. However, an analyst doubled down on his bullish stance on the Elon Musk-led company.
Reacceleration In The Cards: Tesla’s sales, margins, and earnings per share are expected to reaccelerate in 2024, said Argus analyst Bill Selesky. In 2024, the factors that drove demand lower will turn positive, namely a sluggish EV market, rising interest rates, elevated inflation, and supply-chain disruptions.
He expects interest rates to trend lower, inflation to decelerate, and supply chains to improve.
Tesla’s Unique Selling Proposition: Tesla’s growing dependence on artificial intelligence in manufacturing and factory utilization has given it a significant competitive advantage, Selesky said. He anticipates that the value of AI at Tesla will be recognized soon on Wall Street.
Poised To Grow: Tesla is the leader in the EV industry, accounting for roughly 50% of the EV market in the U.S. and 20% of global shipments. The analyst anticipates Tesla has an opportunity to grow its market share in 2024.
Recent entrants to the EV market have been struggling to right-size their future capex budgets, including Ford Motor Co., General Motors Corp., Toyota Motor Corp., Volkswagen AG, Nio, Inc., Lucid Motors, Inc., and Rivian Automotive, Inc.
Argus has a “Buy” rating and a $316 12-month price target for the Tesla stock, suggesting a 33% upside potential.
Tesla ended Friday’s session down 0.18% at $237.49, according to Benzinga Pro data.
