Wall Street Firm Gives Telsa An Outperform Rating Due To Lead Position In The Industry

While Tesla stock ended Monday’s trading at a nearly 18-month low, the electric car maker has nonetheless received an optimistic outlook from Macquarie Capital Inc. In a recently published note, the Wall Street firm gave the company an Outperform rating and a $430 price target, citing the electric car maker’s unique position to “lead in ecosystem platforms.”  

Macquarie analyst Maynard Um wrote in a recent note that in the long term, Tesla would likely enjoy an edge against competitors due to the strength and integration of its vehicle hardware and software systems. The analyst pointed out that the auto industry is currently “on the precipice of a multi-decade transformation driven by disruptive innovation and technology.” Thus, companies focused on highly disruptive ecosystem platforms such as Tesla would likely be successful. Um also took a particular focus on Tesla’s real-world Autopilot data as pivotal in establishing the company’s place in the emerging autonomous driving industry.

TheSteve - 10/9/2018 1:21:38 PM

+4 Boost

Just keep in mind that what "Wall Street" thinks doesn't reflect reality. Enron, Lehman Brothers, Nortel Networks, and Research In Motion (now Blackberry) were at one time Wall Street Darlings! Wall Street gets excited on speculation, and reacts negatively only after bad news becomes *The* News.

Investor behavior -- AKA the "voice" of "Wall Street" -- typically does not work well predictively, as we've seen with Enron, Lehman Brothers, Nortel, Blackberry, etc., etc.

valhallakey - 10/9/2018 2:11:17 PM

+3 Boost

Ouch, Nortel Networks :). Good point though!!! I hope Tesla survives as an independent car manufacturer but have no illusions of difficulties and challenges they will face long term.

TheSteve - 10/10/2018 12:47:03 PM

+1 Boost

valhallakey: I, too, hope for the best for Tesla Motors, Tesla fans, and most of all, Tesla owners. Sadly, I'll be surprised in TSLA exists as an entity in a decade, based on their track record, and where they are now with respect to financial viability.

TomM - 10/9/2018 3:12:54 PM

+5 Boost

THe problem with claiming that Tesla has the lead position in the industry is
WHAT INDUSTRY is that?
We have yet to see ANY real competition in the "industry" so we have NO idea how big the industry is

Imagine if the total deposits given to Tesla cars represents the "industry"
They will eventually be used - or refunded - and unless there are MORE people standing in line - the lead in an industry that has reached maturity - leaves only replacements.

SanJoseDriver - 10/10/2018 3:24:17 AM

0 Boost

Um, Tesla sales just surpassed Mercedes in the US. The industry they are leading is the premium car industry, not just EVs anymore.

TheSteve - 10/10/2018 12:51:19 PM

+2 Boost

SanJoseDriver: Teslas are not premium or luxury vehicles. They're just expensive. They cannot hold a candle to the fit, finish, or luxurious appointments of manufacturers who are the de facto leaders. Just sit in a Porsche and you'll see a world of luxury difference that Tesla simply does not offer.

Even an Audi is more luxurious that a Tesla.

SanJoseDriver - 10/14/2018 2:54:50 PM

+1 Boost

I 100% disagree. I am stuck with BMW 3-series and Audi A4s all the time as rental cars and greatly prefer the seats, finish, and tech in the Model 3 or S. The interiors now seem very outdated on other cars, including Porsche.

supermoto - 10/10/2018 11:38:17 AM

+2 Boost

Amazing how many products a company can sell when they lose money on every single sale. I feel sorry for the customers who will be trying to get warranty repairs from a bankrupt company.