Tesla Lands $420 Price Target From Daiwa: Retail Stays Bullish Amid Stock Dip
By Stocktwits Inc | First Published Dec 12, 2024, 8:53 PM ISTThe brokerage highlighted that Trump’s administration may adopt Tesla CEO Elon Musk’s proposal for unified federal autonomous vehicle regulations.
Shares of Tesla, Inc. were down slightly in early trading Thursday after notching the longest winning streak since mid-July.
Daiwa Capital Markets raised its price target for Tesla to $420 from $285, making it the second-highest target among 54 analysts covering the stock, according to Reuters.
Latest Videos
According to reports, at least five more Wall Street analysts have price targets of $400 or more on the EV giant’s shares, with Fubon Securities having the highest of $472.
Daiwa cited potential regulatory tailwinds under President-elect Donald Trump’s administration, which could accelerate Tesla’s robotaxi deployment.
The brokerage highlighted that Trump’s administration may adopt Tesla CEO Elon Musk’s proposal for unified federal autonomous vehicle regulations, streamlining robotaxi development.
Tesla’s robotaxi, dubbed the Cybercab, a two-seater coupe priced under $30,000, was unveiled in October and is slated for production in 2026.
Tesla’s prospects have also been bolstered by General Motors’ recent decision to exit its Cruise robotaxi business, positioning Tesla as a dominant player in the sector, according to the brokerage.
Daiwa praised Tesla’s robust balance sheet and free cash flow from its automotive and energy storage segments, which provide critical funding for its robotaxi ambitions.
Retail sentiment for Tesla (the most-followed ticker on Stocktwits) remained 'bullish' early in Thursday’s session. Message volume surged 77% in the previous session when the stock hit a new all-time high.
Despite optimism, concerns linger. Tesla trades at a trailing price-to-earnings (P/E) ratio of over 116 and a forward multiple of 125 based on estimated 2025 earnings.
Falling EV prices amid increased competition and higher interest rates have also pressured growth, with Goldman Sachs projecting flat deliveries for 2024.
However, Tesla’s planned lower-cost model and robotaxi service in 2025 could provide significant upside.
Tesla shares have surged 71% year-to-date as of Wednesday’s close.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.