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Analysts Still Mixed on Tesla Motors Inc (TSLA) Following High Consumer Reports Ratings

By Carly Forster

Electric car company Tesla Motors Inc (NASDAQ:TSLA) released the highly coveted Model S sedan earlier this year. Tesla estimates that shipments of both the Model S and the Model X combined will total between 50,000 and 55,000 by the end of the year. Consumer Reports recently reviewed Tesla’s new Model S on August 26, rewarding the car a score of 103 out of a possible 100 points.

The Model S’s extremely fast acceleration, breaking and handling abilities, fuel efficiency, and 600 horsepower capabilities are some of the factors that lead to the vehicle’s impressive score.

Consumer Reports said of the car, “its significance as a breakthrough model that is pushing the boundaries of both performance and fuel-efficiency is dramatic (even more so because it is coming from the factory of an American startup company)… It’s a remarkable car that paves a new, unorthodox course, and it’s a powerful statement of American startup ingenuity.”

Shares of Tesla have shot up over 10% since Consumer Reports announced its score of the Model S as investors reacted kindly to the news. With that said, overall opinions of Tesla on Wall Street are rather mixed.

On the bullish side, Morgan Stanley analyst Adam Jonas recently maintained an Outperform rating on Tesla on August 17 and increased his price target from $280 to $465 based on his confidence in the company’s future, particularly in the “shared mobility” space.

Adam Jonas has rated Tesla a total of 32 times since 2011, earning a 78% success rate recommending the company and a +41.7% average return per TSLA recommendation when measured over a one-year horizon and no benchmark. Overall, he has a 60% success rate recommending stocks and a +18.6% average return per recommendation.

On the bearish side, UBS analyst Colin Langan currently has a Sell rating on Tesla with a price target of $210, citing that the company is will inevitably shrink out of its current share price. With that said, the analyst’s bearish rating stems from Tesla’s home battery, Powerwall. Langan believes that once the initial orders for Powerwall are filled, demand for the product will fall.

Colin Langan has rated Tesla five times total since 2014 with no success and an average loss of -2.2% per recommendation when measured over a one-year horizon and no benchmark. Overall, he has a 59% success rate recommending stocks and a +20.3% average return per recommendation.

Out of 14 analysts polled by TipRanks, 7 analysts are bullish on Tesla, 3 are neutral, and 4 are bearish. The average 12-month price target for the company is $311.55, marking a 25.38% potential upside from where shares last closed.