Tesla’s sharp sell-off has made most previously bullish Wall Street analysts’ stock price targets look obsolete.
The yawning gap means Tesla stock needs to rise a whopping 80% to hit analysts’ median price targets, the second widest on the Nasdaq 100 index just behind Baidu. Analysts have a median 12-month price target of $302.
Tesla faces many problems, including Musk turning Twitter Inc. around to focus on China’s return to Covid Zero restrictions. Add to this the supply chain disruptions, rising raw material costs and buyers feeling pressured by persistent inflation and rising interest rates.
Still, many analysts remain bullish, with 27 buying, 11 holding and 7 selling. The target price for the most bullish call is $530, according to data compiled by Bloomberg.
“It’s going to be very difficult for the stock to recover in the next few years,” said Valerie Gastaldi, a technical analyst at DaybyDay. “I advise you not to turn around and wave goodbye to this old beloved.”
This year’s downturn has pushed Tesla’s market cap to just over $530 billion, a far cry from April’s $1 trillion.