NEW YORK - Some of Tesla's institutional shareholders are getting out, convinced that the electric carmaker's days of dizzying growth are in the rear-view mirror.
That doesn’t mean Wall Street has written off the stock. Nineteen analysts tracked by LSEG now have either a "buy" or "strong buy" rating on Tesla, up from 17 in February. The average price target among 49 analysts tracked stands at $178.95, about 1.5% more than the stock's closing price on Monday.Others see it differently.
Gerber believes the shares, which closed on Monday at $176.29, are fairly valued at $100, some 40% less than their current value, as long as Musk stays at the helm. He expects to give part of the remainder of his stock to charity to allay the tax consequences of selling, or use them to sell put options, which allows him to raise income without incurring tax penalties.Nonetheless, Tesla remains the world's most valuable automaker, with a market capitalization of more than $560 billion.
Among the most fervent bulls is Ark Invest founder Cathie Wood, who has held Tesla in her ARK Innovation Fund since 2014 and increased her stake in the company by 10% over the first quarter, according to Morningstar data. Critics, however, say self-driving vehicles are a risky bet because the technology faces engineering and regulatory hurdles. In an April report, Deutsche Bank said cracking the code on full driver-less autonomy represents a significant technological, regulatory and operational challenge.
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