In recent months, Tesla’s stock has seen recent upticks from a tricky 2022. As shareholders pick up significantly more of Tesla’s shares, the corporate currently has more support from Wall Street analysts than ever with an identical uptick in “Buy” rankings.
Above: Tesla’s logo (Image: Alexander Shatov / Unsplash).
Tesla has had more “Buy” calls on Wall Street in recent weeks than ever, in response to data from FactSet in a recent piece from Barron’s. Barclays analyst Dan Levy became Tesla’s thirty first Buy on Wall Street, after the firm recently launched its investments within the automotive sector.
Levy and Barclays launched its automotive investments with Rivian and Tesla, noting the latter automaker’s strong financials and dominant position because the emerging EV sector’s market share leader.
“While Rivian faces various challenges in ramping capability/achieving greater production efficiency and ultimately reaching positive margins and money flow, we nevertheless consider [it] s positioned to take solid share within the inflecting North American EV market,” Levy said.
On reasons for avoiding other auto stocks similar to GM and Ford, Levy pointed to “recessionary pressures” within the memo. As for overall support for Tesla’s stock on Wall Street, the 31 Buys also represents a record for the automaker. Levy was with investment firm Credit Suisse up until last 12 months, though the firm doesn’t cover Tesla stock in the meanwhile.
Tesla’s plans to start delivering the Cybertruck in 2023 also must do with the stocks status on Wall Street at once, in response to Barron’s. The publication notes results from a recent survey by Truist analyst William Stein that means consumers are appealed by the Cybertruck’s unique, angular design.
“Ever since Tesla first showed the Cybertruck in 2019, its unusual angular design stirred controversy,” Stein wrote in a memo on Wednesday. “Implicit interest within the Cybertruck appears much stronger than the bearish view,” he added.
Stein also said that many Tesla shareholders he spoke to expect the Cybertruck to be a dud, though the electrical pickup’s controversial nature may not necessarily be a deterrent in the long term. Still, Stein points out that around 6 percent of pickup truck buyers are serious about going electric, with around 3 percent of the respondents specifically naming the Cybertruck out of a complete of 504 survey respondents.
Currently, Stein has a Buy on Tesla with a $245 price goal.
With roughly 66 percent of Wall Street analysts calling Tesla shares a buy at once, the corporate has gained support levels much like 2012, when it was a much smaller company and held 67 percent Buys. Without delay, Tesla shareholders can stay up for the automaker’s upcoming Investor Day, the long-awaited release of the Cybertruck and plans for the Highland Model 3, amongst other developments still.
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Source: Barron’s