Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    There will be about 6,650 job cuts at Dell

    February 6, 2023

    Bayern reclaim Bundesliga lead with 4-2 win over Wolfsburg

    February 6, 2023

    Strongest earthquake in decades kills hundreds in Turkiye, Syria

    February 6, 2023
    Facebook Twitter Instagram
    • Home
    • Contact Us
    Addis Ababa WeeklyAddis Ababa Weekly
    • Automotive
    • Business
    • Entertainment
    • Health
    • Lifestyle
    • Luxury
    • News
    • Sports
    • Technology
    • Travel
    Addis Ababa WeeklyAddis Ababa Weekly
    Home » Tesla will not overtake Apple in market value – Wall Street analysts
    Business

    Tesla will not overtake Apple in market value – Wall Street analysts

    October 21, 2022
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email

    In a report published today by Bloomberg, Wall Street analysts disputed Elon Musk’s claim that Tesla Inc. would one day surpass Apple Inc. and Saudi Aramco in valuation. In an article by Bloomberg, the electric-vehicle maker reported poor third-quarter results, missing revenue and margin estimates but beating profit estimates. The company missed revenue estimates for the first time since the third quarter of 2021, according to Bloomberg data. Due to the China and European downturns, Musk said demand was “a little harder” than usual.

    Tesla will not overtake Apple in market value - Wall Street analystsSeveral analysts lowered their price target on the company on Thursday following the results and cautious demand outlook. Bloomberg data shows that the average price target for the company is US$293, over 40 percent higher than the stock’s closing price on Thursday. Shares of Tesla closed at US$207.28, down 6.7 percent. “Despite lofty unit volume growth expectations, we remain cautious about valuation, and we continue to see material downside risk to our December 2023 price target,” writes JPMorgan analyst Ryan Brinkman.

    Tesla, which was briefly part of the trillion-dollar valuation group, has a market capitalization of about US$650 billion. The value of Apple is approximately US$2.3 trillion, while that of Saudi Aramco is approximately US$2.1 trillion. This earnings season, investors are keeping a close eye on discretionary purchases and big-ticket purchases like a car, as the US consumer is squeezed between high inflation and rapidly rising interest rates. Analysts and investors have watched for any signs of a slowdown in demand after Tesla reported third-quarter deliveries below expectations earlier this month.

    The risk of demand declines is particularly acute for Tesla because its valuation is heavily reliant on the company’s future growth prospects. In comparison with the S&P 500 Index, Tesla’s stock trades at 49 times its forward earnings. “Considering the volatility of the market, the shares might already be priced fairly, according to BofA analyst John Murphy. Tesla stock is based on a growth-valuation framework in which access to low-cost capital is a key input.

    Though global economic turmoil, supply-chain problems, and high raw material prices may weigh on Tesla’s valuation in the near term, analysts largely maintained their longer-term bullish outlook. “In a recession globally, Tesla’s growth and margins may outperform the rest of the industry, Deutsche Bank analyst Emmanuel Rosner asserted, although he lowered the stock’s price target to US$355 from US$395.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email

    Related Posts

    There will be about 6,650 job cuts at Dell

    February 6, 2023

    Lebanon devalues its currency by 90 percent, market rate is much lower

    February 1, 2023

    Outstanding operational performance by Etihad Cargo in 2022

    February 1, 2023

    Indian FM presents $550 billion progressive and inclusive Union Budget

    February 1, 2023

    Vietnam-India bilateral trade reached record levels in 2022

    February 1, 2023

    Philips cuts 13 percent of jobs in a safety and profitability drive

    January 30, 2023
    Latest News

    There will be about 6,650 job cuts at Dell

    February 6, 2023

    Bayern reclaim Bundesliga lead with 4-2 win over Wolfsburg

    February 6, 2023

    Strongest earthquake in decades kills hundreds in Turkiye, Syria

    February 6, 2023

    African leaders commit to ending AIDS among children by 2030

    February 2, 2023

    Etihad Airways increases its frequency to Frankfurt

    February 2, 2023

    Lebanon devalues its currency by 90 percent, market rate is much lower

    February 1, 2023

    Outstanding operational performance by Etihad Cargo in 2022

    February 1, 2023

    Indian FM presents $550 billion progressive and inclusive Union Budget

    February 1, 2023
    © 2021 Addis Ababa Weekly | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.