As per Reuters, out of the 22 analysts covering Tesla Stock:
- 36% percent recommended a “buy”
- 36% recommended a “hold”
- 28% recommended a “sell”
What’s the reasoning for such a divide?
On August 28th, Tesla’s (NASDAQ:$TSLA) 12-month consensus target price was set at $317.29, which is around 8% below market price. In 3Q17 so far, Tesla has yielded a return of about -4.4%. Despite this negative figure, the stock has risen year to date.
The optimal YTD gains has rendered Tesla the most valuable US automaker by market cap. As of August 28th, this cap was set at $58.6 billion, much higher than Ford Motor (NASDAQ:$F), General Motors (NASDAQ:$GM), and motorcycle maker Harley-Davidson (NASDAQ:$HOG)
All Eyes on the Model 3
Tesla’s Model 3 could potentially be a game changer for the company. The Model 3 is expected to begin delivering to non-employee customers 4Q17. However, a huge production ramp-up will be required to ensure timely deliveries.
In the meantime, investors’ eyes will be glued to any developments pertaining to the Model 3.
There have already been many news developments in the car, and it seems like every week investors learn something new about the Model 3. As it stands, the company still has enough goodwill with potential customers, but the next news hit could change that very quickly.
Featured Image: twitter
