Investor's Corner
‘Tesla will be great long-term,’ Musk says as stock slide continues
Tesla CEO Elon Musk affirmed his confidence in the electric automaker by stating it will be great long-term, despite the stock slide that continues to affect shares.
Tesla shares (NASDAQ: TSLA) have slid considerably in 2022, along with many other automotive and technology stocks. On Tuesday, the decrease continued as the stock reached levels as low as $156.91. At the time of writing, shares were trading at $161.35, down 3.86 percent on the day.
Amongst a broader market decline, Tesla shares have been affected by various external factors this year. Along with Musk’s $44 billion acquisition of Twitter earlier this year, which has Tesla loyalists divided, the company has experienced an increase in competition due to more models and manufacturers entering the sector, and supply chain issues still stemming from the COVID-19 pandemic.
Once worth $1 trillion, Tesla has declined to a valuation that is worth roughly half of that. While the second-most valuable car company, Toyota, is only worth around $197 billion, Tesla still holds the title of the most valuable automaker on Earth.
Musk: Tesla will be great long-term
In a response to WholeMarsBlog, Musk said, “Tesla will be great long-term, but doesn’t control macroeconomic tides.”
Tesla will be great long-term, but doesn’t control macroeconomic tides
— Elon Musk (@elonmusk) December 13, 2022
From a macro perspective, Musk is right. Tesla is up over 600 percent in the past five years. Over the past year, a fifty percent decrease in stock price has been the much more surfaced trend amongst media outlets, but the company has not been the only automaker to experience a rough 2022. Nevertheless, the debate regarding what to do with holdings still rages on.
Tesla Shares: Buy or Sell
Discussions amongst Tesla community members have been polarizing, with many die-hards sticking to their plan to hold shares. Jason DeBolt, who is one of the most notable Teslanaires, retired from his corporate job at the age of 39 thanks to his earnings through Tesla stock. Although the company is still being affected by a broader market decline, DeBolt has considered loading up even more shares.
I’m down $11 million on $TSLA since last year and I’m more bullish on Tesla than ever.
I’m seriously considering selling my house to buy more shares. Like wtf.
Tesla will continue growing revenue 50% annually (as it has since 2014), and profits will grow even faster than that.
— Jason DeBolt ⚡️ (@jasondebolt) December 8, 2022
Others, however, are unwilling to ride the wave and have either decided to sell because of market conditions or because of personal opinions on Musk.
Cancelling my @Tesla Model X order that’s been unfulfilled for over a year now and selling my TSLA stock. They need a cancel option that simply says “Elon Musk”. I won’t give my money to someone that no longer shares the same values I hold important. Likely he never held them. pic.twitter.com/yhxSgJUxZw
— Tom Kulzer (@tkulzer) December 13, 2022
Tesla’s 2022 Performance…and others
Tesla’s 59.68 percent decrease in 2022 defies all of the things the company has accomplished for the year. It opened two new production facilities, expanded global production capacity to well over one million vehicles, and is set to deliver over one million cars in a year for the first time.
Tesla launched the Semi last month, adding to its penetrable markets through commercial projects. The company still overwhelmingly leads the U.S. market share for EVs, so what’s the issue?
Tesla, while it has much more to worry about than just building cars and energy systems, is not the only car company experiencing a downturn this year. Tesla shares are down 59.88 percent this year, but here’s how others are doing in 2022:
- Ford stock: $F – down 37.99% this year
- General Motors stock: $GM – down 36.91% this year
- Rivian stock: $RIVN – down 75.63% this year
- Lucid stock: $LCID – down 80.42% this year
- Polestar stock: $PSNY – down 67.38% this year
Disclosure: Joey Klender is a TSLA Shareholder. I do not hold any other automotive stocks currently.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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