Tesla stock is the “Best Idea” for investors in 2023, according to Baird Equity Research. The firm's analyst sees growth of 130% next year.
Tesla shares fell more than 11% to $109.01 on Tuesday. However, some analysts remain optimistic on the stock. On Wednesday, Ben Kallo of Baird Equity Research cut Tesla's price target to $252 from $316, but that still reflects a target more than 130% above Tuesday's closing price. In addition, Kallo named Tesla shares the “Best Idea” for investors in 2023.
Some analysts lowered their price targets for TSLA stock last week, however they remain well above their current level. Analysts generally support the “buy and outperform” ratings, while the likes of ARK Invest continue to buy hundreds of thousands of Tesla shares, reaffirming their confidence in the manufacturer.
Kallo said investors should not be too worried about weakening demand for Tesla vehicles in early 2023. The analyst wrote that Tesla “has many demand levers to pull including an increase in vehicle leasing and additional supercharging incentives,” according to Investor's Business Daily. Kallo added that Tesla is best positioned in the automotive market as electric vehicles continue to capture a larger share.
“Gigafactories in Austin and Berlin should lift margins by an increasing amount q/q in 2023 as production ramps. We are encouraged by reports of production in Berlin reaching milestones of 3K vehicles per week and production targets of 75K in Q123.”
“We continue to believe TSLA is the best positioned EV maker in both the near and long term,” he concluded.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.