Tesla is getting a strong show of faith from a group that chief executive officer Elon Musk once blasted for doubting the company’s prospects: Wall Street analysts.
“The Tesla bulls I know are loading up at these levels,” said Catherine Faddis, senior portfolio manager at Fernwood Investment Management. Some analysts remain sceptical that the worst is over, with its stock still commanding a higher price-to-earnings ratio than 90 per cent of the stocks in the SP 500. Some 27 per cent of the analysts tracked by Bloomberg still rate Tesla a hold, while 13 per cent advise selling the stock.
The shares have cheapened so much that Tesla has since retraced several milestones it broke through during the stratospheric surge of 2020 and 2021, including losing its position as the fifth-most valuable company in the SAdvertisement