Is Tesla Stock a Buy at $170? One Wall Street Analyst Predicts Price to Reach $293

Tesla (NASDAQ: TSLA) shares received a boost following its first-quarter earnings report, despite a 9% decline in revenues year over year. The stock’s slide leading up to the report had already set expectations for this outcome, so the slight miss on Wall Street’s estimates did not come as a surprise.

Analyst Tom Narayan from RBC Capital remains optimistic about Tesla’s future, maintaining an outperform (buy) rating on the stock. He slightly lowered his price target from $294 to $293, but this still represents significant upside from the current share price of around $170.

Narayan highlighted two key areas where Tesla is making progress. Firstly, the company is effectively managing costs, with gross profit margin on automotive revenue surpassing estimates last quarter. Secondly, Tesla has made significant advancements in developing its full self-driving (FSD) software, which could lead to increased subscription revenue and benefit its robotaxi business in the near term. The upcoming unveiling of the Cybercab in August is also anticipated.

While Tesla still has room to grow its vehicle deliveries over the long term, investors may want to wait for signs of revenue growth and volume expansion before considering buying shares. The stock’s potential for growth remains high, but improvements in the business’s performance could drive it even higher in the future.