Guggenheim raises caution for EV bulls

on Dec 20, 2021
  • Guggenheim's Ali Faghri initiated Tesla and Lucid with a "neutral" rating on Monday.
  • The analyst cautions EV adoption in 2022 could fail to meet the industry forecasts.
  • Joe Terranova reiterated his bullish stance on Tesla on CNBC's "Halftime Report".

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EV adoption in 2022 could fail to meet the industry forecasts and be a bottleneck for the shares of Tesla Inc (NASDAQ: TSLA), cautioned Guggenheim’s Ali Faghri in his note this morning.  

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Faghri has a price target of $924 on Tesla

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Faghri initiated coverage of TSLA on Monday with a “neutral” rating and a price target of $924 a share that represents a 2.5% upside from here only. The analyst wrote:

Tesla’s scarcity value from a stock perspective is waning with significantly more EV, and AV focused companies going public over the last 12-18 months, giving investors more options at lower valuations to get exposure to secular growth in EVs and AVs.

Other reasons he’s “neutral” on the stock for the near term include inadequate charging infrastructure and battery capacity. Faghri also assumed coverage of Lucid Group on Monday with a “neutral” rating and a PT of $38. His long-term view on the EV sector, however, remains positive.

Joe Terranova reiterates his bullish stance

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On CNBC’s “Halftime Report”, Virtus Investment Partners’ Joe Terranova agreed that shares of Tesla had come down sharply since the start of November but reiterated his bullish stance on the stock.

We’ve seen this staggering decline for Tesla, but it’s still above its 100-day MA. It’s maintaining the strength of its technical formation. Once you get past the tax selling, it’s a company that you’d want to re-establish a position in, if you’ve gotten out, or initiate a position if you don’t hold one at all.

Tesla CEO Elon Musk has sold roughly $12 billion worth of company stock in less than two months. But last week, CFRA’s Garrett Nelson said the sell-off in TSLA had more to it than Musk’s stock sale.  


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