Analyst Gordon Johnson of GLJ Research maintained a Sell rating on Tesla (TSLA – Research Report), retaining the price target of $24.86.
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Gordon Johnson has given his Sell rating due to a combination of factors impacting Tesla’s performance. Key among these is the apparent structural decline in global demand for Tesla vehicles, as indicated by troubling sales data from China, Europe, and the U.S. This decline is compounded by the underwhelming expectations for Tesla’s upcoming launch of unsupervised self-driving robotaxis, which seem to fall short of the promises made by Elon Musk, turning out to be more limited and less innovative than anticipated.
Moreover, a significant concern is the competition, particularly from BYD, which now offers a driver-assist system similar to Tesla’s Enhanced Autopilot at no additional cost, potentially leading to an immediate loss in Tesla’s sales in China. Coupled with these issues, the high price-to-earnings ratio of Tesla’s stock, which is currently around 300x, poses a risk of further decline if earnings do not show substantial growth. These elements together suggest a challenging outlook for Tesla, justifying the Sell rating.
Johnson covers the Technology sector, focusing on stocks such as JinkoSolar, SolarEdge Technologies, and Enphase Energy. According to TipRanks, Johnson has an average return of -6.9% and a 56.41% success rate on recommended stocks.
In another report released on February 6, Phillip Securities also downgraded the stock to a Sell with a $265.00 price target.