It seems investors are a bit infatuated with these legacy Big 3 automakers as they look to rapidly expand their electric car offerings to catch up with Tesla.
Tesla is still growing incredibly quickly. Analysts expect earnings per share to more than double this year and increase at an average rate of about 45% annually over the next few years.
Yet Tesla is one of the most polarizing stocks on Wall Street.
According to Refinitiv, 14 analysts have the stock rated a “buy,” 13 a “hold” and 10 a “sell.” Contrast that with GM, which has 20 buy ratings, two holds and no sells.
Skeptics have many questions about Tesla and Musk
The consensus target price for Tesla stock from analysts is $652, about 6% lower than its current price.
Still, there is no denying that the company has plenty of ardent fans, and its vehicles have grabbed plenty of positive headlines this week alone.
The Model 3 edged out Ford’s Mustang for the top spot, and Tesla’s Model Y also ranked third on the list. Shares of Tesla rallied more than 5% Wednesday following the news.
So even though Tesla’s stock is still in the red this year, shares have quickly clawed back much of their 2021 losses after a more than 12% surge in the past five days.
Tesla is nothing if not volatile.