2020 was a wild ride Tesla’s stock as it became the darling of investors. It opened on January 2, 2020 at $84.90 (adjusted for the stock split) and closed the year at $705.67 per share after gaining $10.89 (+1.157%) on 31 December 2020.
Despite the rally of 2020, some analysts still predict a gloomy future for the stock.
Tesla Stock Snapshot
- One year return: 696.45% according to Bloomberg
- P/E ratio: 1,118.05
- Market Cap: $668.91 billion
- Outstanding shares: 947.9 million
- EPS: 0.63
- Price to book ratio: 41.61
- Beta: 2.19
- Earnings Announcement for Period Ending Q4/2020:01/29/2021
Here’s where five analysts say Tesla shares are headed in 2021.
JPMorgan analysts rate the stock “underweight,” with a price target of $90, an 87% drop from current levels.
Tesla stock is “in our view and by virtually every conventional metric not only overvalued, but dramatically so,” a team of JPMorgan analysts led by Ryan Brinkman said earlier in December.
Goldman Sachs has a “neutral” rating for Tesla and 12-month price target of $780. On December 2, analysts led by Mark Delaney raised the price target to $780 from $455, telling clients: “We believe that the shift toward battery electric vehicle (EV) adoption is accelerating and will occur faster than our prior view.
Wedbush’s Dan Ives rates the stock “neutral,” with a 12-month price target of $715, and a bull case price of $1000.
“Heading into year-end and 2021, we are seeing a major inflection of EV demand globally with our expectations that EV vehicles ramp from ~3% of total auto sales today to 10% by 2025,” Ives said on Dec 29 in a note to clients. “We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years especially in the key China region which we believe could represent ~40% of its EV deliveries by 2022 given the current brisk pace of sales.”
Garrett Nelson, senior equity analyst at CFRA Research senior equity strategist has a “hold” rating on Tesla and a 12-month price target of $750.
“After a YTD run-up of over 700%, we think future growth expectations are now appropriately bullish and after a multi-quarter run of positive news, we struggle to identify the next catalyst in the story. In early January, TSLA will report Q4 vehicle production/sales, and we continue to forecast it will fall just shy of TSLA’s full year sales goal of 500K units,” Nelson said. ” While TSLA has materially strengthened its balance sheet through recent equity offerings, the company’s longer-term growth plans will require significant capital and we anticipate TSLA will face some bona fide competition in the EV space from Lucid, Rivian, and others in 2021.”
RBC Capital Markets
RBC Capital Markets has a $339 price target for Tesla, more than a 50% drop from current levels.
“Our $339 price target takes a look at EV/sales- and EV/EBITDA-based multiple approaches and probability weights them (65% base, 17.5% each for upside/downside),” analysts led by Joseph Spak said on Dec 22.
By Ifunanya Ikueze