Shares of Tesla Inc. (NASDAQ: TSLA) surged over 1.77% to $172.92 in pre trading session on Wednesday as the majority of price targets from consistently bullish Wall Street analysts appear to be out of date as a result of the sharp decline in Tesla Inc. (TSLA) shares.
The difference is the second-widest on the Nasdaq 100 Index, only behind Baidu Inc., and indicates that Tesla shares must increase by a staggering 80% before reaching the median analyst target price. The shares of the Elon Musk-led company has fallen 52% this year to $167.87, and analysts’ consensus 12-month target prices are $302. Tuesday saw the stock trading up 0.5%, poised to end a four-day losing trend if gains persist.
Tesla has been dealing with a variety of problems, from Musk’s emphasis shift to fixing Twitter Inc. to China’s reinstatement to Covid Zero limitations. Supply-chain bottlenecks, increased raw material costs, and consumers feeling the pinch from persistent inflation and rising interest rates all contribute to this.
Many analysts are still standing by their positive predictions, with 27 of them giving the company a buy recommendation, 11 a hold, and 7 a sell. The price goal for the bullishest call, according to information gathered by Bloomberg, is $530.
The stock’s recovery in the upcoming years “might be very difficult,” according to Valerie Gastaldy, a DaybyDay technical expert. “We advise against looking back and waving this old sweetie off.”
Tesla’s market capitalization is now just a little bit over $530 billion, down from a trillion dollars in April due to this year’s downturn.
Elon Musk Losing Net Worth Â
Elon Musk is still the richest man in the world after seeing his wealth decline by more than $100 billion this year. The CEO’s net worth is estimated by Bloomberg and Forbes to be between $170 billion and $182 billion. That places him just slightly ahead of Bernard Arnault, the founder and CEO of the luxury goods firm LVMH ($157 billion), in the list of the richest people in the world.
It was a different situation for Musk a year ago, when tech stocks were rising. According to estimates from Bloomberg, Musk’s net worth was $340 billion when Tesla shares peaked in November 2021 at about $410.
At the time, Jeff Bezos, the founder of Amazon, was the richest man in the world and was a close second with a net worth of almost $200 billion.
But since then, investors’ confidence has been shaken by escalating recession worries, decreasing EV demand, and Musk’s acquisition of Twitter, which has caused Tesla’s stock to drop more than 59%. A number of vehicle recalls have also harmed the company’s prospects, including one this week that will take 321,000 U.S. automobiles off the road due to a problem with the rear tail lights.
Musk owns around 15% of Tesla, thus any significant decrease in the stock of the firm has a significant negative impact on his net worth. Musk hasn’t had the finest year, though. He has actually lost more money than any other billionaire, with a $101 billion decline in net value.
The second-largest loser on the list is Mark Zuckerberg. In contrast to Changpeng Zhao, CEO of cryptocurrency exchange Binance, who has lost $81.9 billion over the same time period as the crypto winter persists, the CEO of Meta has seen his fortune decline by $83.5 billion this year.
