The "Magnificent Seven" is a group of large, highly influential companies that includes Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla (TSLA +3.93%). Five of these stocks registered substantial gains so far in 2024 trading. However, Apple is down roughly 10% so far in 2024, while Tesla's share price fell 28%.
What comes next for Tesla's stock?
In an investor note published by Citigroup analyst Itay Michaeli on March 27, the analyst maintained a neutral rating on the stock but lowered his price target from $224 per share to $196. With Tesla trading at roughly $180 per share, that would imply an upside of roughly 9%, but the analyst sees some bearish dynamics for the electric vehicle (EV) pioneer.
NASDAQ: TSLA
Key Data Points
Is Tesla a buy ahead of its Q1 deliveries report?
Michaeli lowered his Q1 delivery forecast for Tesla from 473,300 vehicles to 429,900 and noted that current delivery expectations on Wall Street could still be too high. Looking further out, the analyst also thinks that the average annual delivery estimates for this year and 2025 are too high.
Because Tesla lowered prices on its vehicles earlier this year and then more recently announced price increases for its Model Y line, it's hard to get a precise read on how deliveries for Q1 and all of 2024 will come in compared to Wall Street's expectations. Reports that the broader automotive industry has seen unsold EV inventories climb over the last year suggest that Tesla could continue to face demand headwinds in the near term. It's also possible that bearish concerns are overblown.
Tesla stock trades down roughly 56% from its all-time high, and this year's big pullback could be a worthwhile buying opportunity for long-term investors who are bullish on the company's long-term prospects in the EV market and opportunities to score wins with self-driving robotaxis, battery technology licensing, and other emerging growth categories. On the other hand, investors should still approach the stock with the understanding that it could see volatile swings depending on what's in the Q1 deliveries report expected in early April.
