Tesla Shares Set To Rally For Third Day After Record Slump

The carmaker’s dizzying 500% surge this year has come courtesy of improved headline results and a flood of money into technology-linked shares, but Wall Street analysts are still less convinced about the company’s longer-term prospects.

The median price target on the stock is $300 – well below its Sept. 1 record high of $502.49, according to Refinitiv data, and of the 33 analysts covering the stock, 15 rate it “hold” and 10 “sell” or lower.

As investors look to “Battery Day” on Sept. 22 that is expected to showcase Tesla’s latest improvements, the company still faces a long development path requiring huge investment if it is to durably challenge the world’s biggest manufacturers.

“We (and the market) expect the announcements to be significant, cementing Tesla’s cost and technology lead for several more years,” UBS autos analyst Patrick Hummel wrote in a note, listing a series of announcements he expected from the day and doubling his price target to $325.