Tesla (NASDAQ:TSLA) has had its justifiable share of issues over the past few months, not least the indications of dwindling demand as was evident in Q4’s disappointing delivery numbers. Nevertheless, going by a recent survey of Chinese EV consumers, it looks just like the Tesla story could possibly be getting back to winning ways.
That’s the conclusion reached by Wedbush analyst Daniel Ives after the investment firm got down to gauge sentiment amongst prospective EV buyers in China. Greater than 500 consumers participated within the survey, of which 76% said they’re “considering” buying a Tesla in 2023. Domestic rivals BYD and Nio took second and third positions, respectively.
One in all the most important questions around Tesla immediately is whether or not it might withstand the growing local competition in China, but the outcomes offer a sign of the strength of its brand and offerings.
“Tesla stays the automotive of alternative amongst EV buyers based on our survey,” says the 5-star analyst. “The unique brand, design of the Model 3/Y, and battery technology remain three core reasons that Chinese consumers are so positive on Tesla based on our research inside Mainland China. With China representing the ‘hearts and lungs’ of the Tesla story, the continued success on this key region is the linchpin to the Tesla bull thesis in 2023 and beyond.”
Further bolstering the bull case, respondents were also unequivocally positive regarding the recent Model Y price cuts announced firstly of the 12 months. The “smart strategic poker move” has “positively influenced” the choice of 70% of those surveyed, making them more prone to buy a Tesla Y. This offers proof the worth cuts have been a “home run success out of the gates,” the analyst concludes.
All told, Ives rates TSLA stock an Outperform (i.e., Buy) to associate with a $175 price goal. The implication for investors? Potential upside of ~22% from current levels. (To observe Ives’ track record, click here)
If there’s one certainty within the markets, it’s that Tesla will at all times get loads of attention from the analysts. Tesla shares have 28 recent analyst reviews on record, breaking all the way down to 17 Buys, 8 Holds, and three Sells. The stock is selling for $143.75 and its $187.32 average price goal implies ~30% upside from that level. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this text are solely those of the featured analyst. The content is meant for use for informational purposes only. It is extremely essential to do your individual evaluation before making any investment.