- Citi analyst Itay Michaeli raised the price target on Tesla Inc (NASDAQ:TSLA) to $262 from $236 and reiterated a Sell. The price target implies a downside of 75.9%.
- Michaeli increased earnings estimates through 2023 estimates to reflect "strong" Q4 trends and improving supply/demand dynamics.
- Despite some known near-term margin headwinds, electric vehicle supply/demand will remain strong enough to continue driving year-over-year margin expansion, particularly in the U.S., where Tesla's share is most robust.
- However, Michaeli's Sell rating reflects his view of the stock's risk/reward at the current valuation. He believes he embeds expectations for Tesla selling 20 million units annually by 2030, an implied market share outcome that his prior market analysis does not support.
- Tesla is a vertically integrated sustainable energy company that aims to transition the world to electric mobility by making EVs. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties.
- Price Action: TSLA shares traded lower by 0.43% at $1,081.50 in the premarket session on the last check Thursday.
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