Tesla stock sell-off overdone, analyst bullish on growth

Tesla’s stock faces pressure, but RBC Capital Markets analyst Tom Narayan believes the sell-off has gone too far. He raised the price target to $319, citing strong demand, profits, and long-term plays like Megapack energy storage systems. However, Tesla’s stock has dropped 20% year over year, signaling further dips ahead.

Despite the decline, RBC projects Tesla’s revenue to rebound to $111 billion by 2026. The company’s adjusted earnings per share are expected to rise, driven by expanding production and new product launches. Narayan sees potential in Tesla’s robotaxi, which could reinvigorate investor enthusiasm for its full self-driving ambitions.

However, risks like volatile earnings, cost inflation, and supply chain hiccups loom. Elon Musk’s behavior and political comments also raise governance concerns. RBC acknowledges Tesla’s unpredictability but remains bullish on the company’s growth prospects, despite potential stock price volatility.

Read more at Yahoo Finance: Tesla sell-off is overdone, this bull says