Tesla Stall Shows Analyst Rift on Stratospheric Valuation

tesla shows analyst rift stratospheric
Middle East
  • Date: 01-Jul-2021
  • Source: Yahoo News
  • Sector: Transport
  • Country: Middle East
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Tesla Stall Shows Analyst Rift on Stratospheric Valuation

(Bloomberg) -- Few companies have been as polarizing on Wall Street as Tesla Inc. -- and the lackluster run that’s weighed on the S&P 500 Index this year has done nothing to lessen it.

To Piper Sandler & Co.’s Alexander Potter, the company’s potential dominance of the electric-car business warrants a $1,200 stock-price target, nearly double its $679.70 close on Wednesday. To Craig Irwin of Roth Capital Partners, as rivals move to pick off a head start that turned Tesla into the world’s most highly valued car company, the stock will sink to $150.

The divergence illustrates the tension that sent Tesla shares down nearly 4% during the first half of the year even as other automakers surged ahead. That’s a marked contrast to its more than 8-fold jump last year and reflects investors’ doubts about heady growth expectations for the company in the face of stronger competitive threats and signs of a sales slowdown in China.

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