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Bernstein Turns Bearish On Tesla

Bernstein on Tuesday downgraded Tesla (TSLA) to Sell from Hold, saying that its high valuation is “mind-boggling” and “difficult to justify”.

At the same time, Bernstein analyst Toni Sacconaghi left the stock’s price target unchanged at $900 (42% downside potential). The analyst stated that “its EV has now matched Toyota and Volkswagen combined (who collectively make 20M cars vs. Tesla at 500K) and is up nearly 500% in less than a year – unprecedented for a large cap stock outside of the tech bubble.” As a result, “Tesla now even looks expensive vs. large cap growth tech,” he added.

Last week, the electric car maker reported higher-than-expected 2Q earnings, after which Piper Sandler analyst Alexander Potter raised his price target to $2,400 from $2,322. Potter reiterated a Buy rating on Tesla and believes that the stock “deserves ‘must own’ status.”

Currently, the Street has a Moderate Sell analyst consensus on the stock with 13 Holds, 12 Sells and 4 Buys. The average price target of $1,257.04 implies downside potential of 18%. (See TSLA stock analysis on TipRanks).

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Amit Singh
Amit Singh has over eight years of strong experience (both sell-side and buy-side) in analyzing financial reports and filings as well as identifying strategic investment opportunities. Over the years, Amit has covered various industries and geographies, with a primary focus on consumer staples and the consumer discretionary sector. Amit’s background spans evaluating company portfolios, building complex financial models, writing financial articles, and identifying the overall financial worth of companies. He has a post-graduate diploma in finance.

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