Nearly tripled in the year! The craziness of Teslas share price scares analysts

category:Finance
 Nearly tripled in the year! The craziness of Teslas share price scares analysts


After U.S. stock market trading on Wednesday, Tesla disclosed a second quarter report that exceeded market expectations, showing that for the first time, Tesla achieved four consecutive quarters of profits and won a ticket to be selected into the S & P 500 component stocks.

But it was at a time when the situation was so good that the share price should continue to rise, Tesla was quickly short by the chairman and analysts of the securities and Exchange Commission (SEC), and then closed down for two consecutive days.

Short term trading is more risky than long-term investment, so Im really worried, sec chairman Jay Clayton said of retail investors. Although he did not name specific stocks, his answer immediately after the question should Tesla and other stocks recent astonishing rebound cause alarm? it is thought-provoking.

In addition, after the release of the good financial report, Barrys analyst Brian Johnson immediately bucked the current warning, saying that Tesla is unlikely to achieve the delivery target of 500000 vehicles by 2020, and the stock price may start to reverse in the fourth quarter, with a target price of $300, which is more than 80% lower than the closing price of Tesla on Wednesday.

Its worth mentioning that this short singing effect of Barclays was immediate, and Teslas share price turned up and down at that time.

Similarly, JPMorgan Chase, like Barclays, has set a lower target price of $325 and reiterated its underweight rating. In the view of the investment bank, Teslas share price is still significantly overvalued, which is evidenced by the fact that the combined market value of Toyota and Volkswagen, the leaders of the automobile industry, is lower than Tesla.

Pierre ferragu, an analyst at newstreet, said Teslas positive growth and growth in gross margin would slow down, with limited short-term stock price catalyst.. As a result, he downgraded his rating from buy to neutral with a target price of $1500.

However, both Bernstein and Goldman Sachs have maintained a neutral rating on Tesla with a target price of $900 and $1475, respectively.