After surpassing Q1 2021 analysts’ projections, 11 out of 24 analysts believe the stock presents a perfect buying opportunity, according to TipRanks.com. Six analysts recommend holding while seven are advising investors to sell. Furthermore, New Street’s global team head Pierre Ferragu expressed that Tesla will easily surpass the deliveries targets for 2021, even without the Austin and Berlin factories. Historically, meeting delivery targets has always influenced Tesla’s stock.
Are analysts wrong on Tesla stock?
Elsewhere, Gordon Johnson, who has in the past questioned Tesla’s 2020 meteoric rise, maintains that the company is still at risk of failing to meet delivery targets. According to Johnson, investors should not bank on Tesla after beating analysts’ estimates by 13,000 cars. The company delivered 184,800 vehicles in the first quarter of 2021. Johnson notes that analysts had incorrectly cut their delivery estimates for Tesla from 188,000 to 171,600 units. He believes most Tesla analysts are either overreacting to Tesla’s Q1 delivery numbers or misunderstanding them, hence the need to sell. Investors had expected Tesla stock would surge after the impressive Q1 results, but there remains some level of skepticism. Eric Schiffer, CEO of private equity Patriarch Organization, notes that investors are rejecting the stock. However, according to Rod Lache, Tesla remains a bullish stock, and investors need to hold it since the company is meeting its targets. He said: Amid questions about Tesla stock factors regarding increasing competition and global chip shortage still linger. However, the company’s entry into the crypto space might have an impact on the shares. In February, Tesla announced a $1.5 billion investment in bitcoin. During the first-quarter results, the company revealed that its bitcoin fortunes stand at $2.5 billion.
