Connect with us

Hi, what are you looking for?

Image courtesy of Jim Ringold, CleanTechnica.

Clean Transport

Tesla’s Stock Down 50% Year Over Year — Is It A Buy Now?

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Like much of the market, Tesla’s stock has had a bit of a rough year, which many point to as a sign that the automaker’s shares were overinflated. At the time of writing, Tesla’s stock is down about 50 percent on the year, even more than the market overall. Though, some bullish analysts see this as an opportunity, rather than a setback.

Many growth stocks have been hit with rising interest rates and high inflation, and Tesla faces a few additional barriers that have its shares down about 50 percent on the year. In a recent story, however, Forbes contributors at the interactive financial community Trefis questioned whether Tesla’s stock is now a buy or not, especially ahead of key developments expected in 2023.

The Trefis team is reportedly made up of MIT engineers and other Wall Street analysts, and it offers a useful price analysis product for looking at stock prices.

Trefis recently reduced its price estimate on Tesla’s stock to $272 for a drop of about 10 percent. Despite this fact, the company’s price target is roughly 50 percent ahead of the current market price for Tesla’s shares at the time of writing. The group also notes that Tesla has had “solid” execution so far with its financials, adding that it has a goal of increasing deliveries by 50 percent each year for multiple years in a row.

The current economic downturn remains a major barrier to most of the auto industry globally, and concerns of demand destruction in China remain front and center for Tesla. The automaker cut prices on the Model 3 and Model Y by 9 percent in October, and recent reports show Tesla’s Giga Shanghai is shortening shifts, scaling back production, and delaying onboarding for new hires.

Tesla isn’t guaranteed to succeed by any metric. Though, Trefis points out that the company is well-poised to face a long-term, industry-wide shift to electric drivetrains. The community also notes that Tesla’s past margins are some of the auto industry’s best.

As for current and upcoming developments, the team suggests that Tesla’s recent delivery of the Semi is significant, as is the company’s tooling of Gigafactory Texas to begin producing the highly-anticipated Cybertruck next year. In the past year, Tesla also opened and began ramping up production at both Giga Berlin-Brandenburg and Giga Texas, both of which will help expand the automaker’s worldwide production capacity.

There’s no way to predict how Tesla will perform, nor whether it’s stock is worth buying right now. However, Trefis predicts that Tesla will remain “solidly profitable” as its sales continue to increase, which shareholders may read as a good sign.

Originally posted on EVANNEX. By Peter McGuthrie.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

EV Obsession Daily!

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

Tesla Sales in 2023, 2024, and 2030

CleanTechnica uses affiliate links. See our policy here.
Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.


You May Also Like

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.