We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tesla (TSLA - Free Report) shares have been hit mightily amid recent market volatility with the EV giant’s stock down 35% year to date. That said, at $262, TSLA is still sitting on gains of over +40% in the last two years which has roughly matched the S&P 500 but has trailed the Nasdaq’s +57%.
Despite a free fall from highs of almost $500 a share in December, investors have come to find that it is never wise to count Tesla’s stock out for a rebound.
To that point, fears of slower EV growth and price cuts among Tesla’s EV lineup have been dismissed over the last year due to the company’s market dominance. This begs the question of whether it's time to buy the drop in Tesla’s stock yet, with it noteworthy that TSLA is trading 89% above its 52-week lows of $138 last April.
Image Source: Zacks Investment Research
Tesla & Market Sentiment
Investor sentiment often magnifies Tesla’s appealing growth trajectory and justifies its premium to the broader market in terms of valuation. At the helm of this has been Tesla’s popular but also polarizing CEO, Elon Musk.
Musk’s alignment with President Trump has been under scrutiny of late with Tesla giving up most of its post-election gains in recent weeks. As the co-head of Trump’s Department of Government Efficiency (DOGE), some have come to question if Musk’s political involvement is damaging Tesla’s brand as a conflict of interest.
To that point, TSLA has been hit harder than the other Magnificent-7 themed big tech stocks amid ongoing concerns that Trump’s tariff policies will have an ill effect on the global economy. On the other hand, some investors may see Musk’s position within the DOGE as a way to reduce regulatory tape for Tesla and other EV makers.
Average Broker Recommendations (ABR)
With 41 brokerage firms covering Tesla stock and providing data to Zacks, TSLA currently has an average broker recommendation (ABR) of 2.79 on a scale of 1 to 5 (Strong Buy to Strong Sell). Tesla’s ABR does speak to a polarizing viewpoint for Tesla and Elon Musk at the moment with 13 brokers at a strong buy, 14 at a hold, and 10 at a strong sell.
Image Source: Zacks Investment Research
Tracking Tesla’s P/E Valuation
Given Tesla’s appealing growth trajectory is still intact, investors are certainly eying the recent dip in TSLA for a better buying opportunity. In this regard, TSLA does trade well below its high of 240X forward earnings over the last three years but is slightly above the median of 84.1X during this period.
Image Source: Zacks Investment Research
Bottom Line
It may be too soon to bite at projections of double-digit top and bottom line growth for Tesla in fiscal 2025 and FY26. However, Tesla should remain a viable long-term investment with its stock landing a Zacks Rank #3 (Hold). Furthermore, the Average Zacks Price Target of $348.61 suggests 32% upside for TSLA, although an ascension to this mark will largely depend on broader markets stabilizing and finding a bottom.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Is it Time to Buy the Drop in Tesla Stock Yet?
Tesla (TSLA - Free Report) shares have been hit mightily amid recent market volatility with the EV giant’s stock down 35% year to date. That said, at $262, TSLA is still sitting on gains of over +40% in the last two years which has roughly matched the S&P 500 but has trailed the Nasdaq’s +57%.
Despite a free fall from highs of almost $500 a share in December, investors have come to find that it is never wise to count Tesla’s stock out for a rebound.
To that point, fears of slower EV growth and price cuts among Tesla’s EV lineup have been dismissed over the last year due to the company’s market dominance. This begs the question of whether it's time to buy the drop in Tesla’s stock yet, with it noteworthy that TSLA is trading 89% above its 52-week lows of $138 last April.
Image Source: Zacks Investment Research
Tesla & Market Sentiment
Investor sentiment often magnifies Tesla’s appealing growth trajectory and justifies its premium to the broader market in terms of valuation. At the helm of this has been Tesla’s popular but also polarizing CEO, Elon Musk.
Musk’s alignment with President Trump has been under scrutiny of late with Tesla giving up most of its post-election gains in recent weeks. As the co-head of Trump’s Department of Government Efficiency (DOGE), some have come to question if Musk’s political involvement is damaging Tesla’s brand as a conflict of interest.
To that point, TSLA has been hit harder than the other Magnificent-7 themed big tech stocks amid ongoing concerns that Trump’s tariff policies will have an ill effect on the global economy. On the other hand, some investors may see Musk’s position within the DOGE as a way to reduce regulatory tape for Tesla and other EV makers.
Average Broker Recommendations (ABR)
With 41 brokerage firms covering Tesla stock and providing data to Zacks, TSLA currently has an average broker recommendation (ABR) of 2.79 on a scale of 1 to 5 (Strong Buy to Strong Sell). Tesla’s ABR does speak to a polarizing viewpoint for Tesla and Elon Musk at the moment with 13 brokers at a strong buy, 14 at a hold, and 10 at a strong sell.
Image Source: Zacks Investment Research
Tracking Tesla’s P/E Valuation
Given Tesla’s appealing growth trajectory is still intact, investors are certainly eying the recent dip in TSLA for a better buying opportunity. In this regard, TSLA does trade well below its high of 240X forward earnings over the last three years but is slightly above the median of 84.1X during this period.
Image Source: Zacks Investment Research
Bottom Line
It may be too soon to bite at projections of double-digit top and bottom line growth for Tesla in fiscal 2025 and FY26. However, Tesla should remain a viable long-term investment with its stock landing a Zacks Rank #3 (Hold). Furthermore, the Average Zacks Price Target of $348.61 suggests 32% upside for TSLA, although an ascension to this mark will largely depend on broader markets stabilizing and finding a bottom.