HSBC Reiterates $131 Price Target on Tesla

HSBC analyst Michael Tyndall reiterated a Reduce rating and $131 price target on Tesla

“More promises for the future, but today’s reality is tough: there is no correlation between TSLA’s share price and its current earnings.

Looking back over the past two years the stock is up 93% (vs S&P us 55%), somewhat less than the 110% rally enjoyed by its Mag7 peers.

The earnings comparison is starker; over the same period consensus 12mth forward earnings for TSLA have more than halved, whereas the estimates for the Mag7 have broadly doubled.

If we look at our own estimates, our ESS auto forecasts have improved over the period, but this has been greatly overshadowed by the deterioration in the auto business.

Meanwhile, none of the pre-revenue businesses have matured to a sizable commercial reality.”

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