5 Best Automotive Stocks to Buy According to Analysts

In this article, we look at the 5 Best Automotive Stocks to Buy According to Analysts. Please visit 8 Best Automotive Stocks to Buy According to Analysts if you’d like to see an extended list and the methodology behind it.

5. Tesla Inc. (NASDAQ:TSLA)

Potential Upside: 19.54%

Number of Hedge Fund Holders: 137

Tesla Inc. (NASDAQ:TSLA) is one of the automotive stocks to buy according to analysts. The stock grew 31.63% in the past year, while it declined 14.10% year-to-date. On April 22, Reuters reported that Tesla is further boosting its spending plan to over $25 billion this year to support its initiatives in artificial intelligence, robotics, and chips.

Pixabay/Public Domain

Tesla said in the Q1 update:

“We are making the necessary investments that will ensure our access to key materials and componentry in each region across vehicle, energy and AI as trade and geopolitics become more uncertain. In recent months, we have announced further regionalization and vertical integration of critical supply chains,”

The company reported a 16% rise in total revenues in the first quarter of the year to $22.4 billion from $19.3 billion in the same period last year.

On the other hand, on April 23, Canaccord Genuity raised its price target on Tesla to $450 from $420 and maintained a Buy rating on the shares, citing the company’s higher capital expenditure plan, according to a report by TheFly.

According to ratings compiled by CNN of 54 analysts, 44 percent placed a Buy rating on Tesla, while 43 percent marked it with a Hold rating. The Tesla stock has a median price target of $450, a 19.54% upside from the current price of $376.30.

Tesla, Inc. (NASDAQ:TSLA) is a developer, manufacturer, designer, lessor, and seller of electric vehicles and energy generation and storage systems. The company operates across China, the United States, and globally through the Automotive and Energy Generation and Storage segments.