Skip to main content

Market Overview

Oppenheimer's Bull Vs. Bear Debate On Tesla

Oppenheimer's Bull Vs. Bear Debate On Tesla

Shares of Tesla Inc (NASDAQ: TSLA) aren't far off their all-time highs, but the stock remains one of the most divisive on Wall Street. Oppenheimer looked at five battleground points for bulls and bears in a Tuesday report. 

The Analyst

Oppenheimer's Colin Rusch maintains a Perform rating on Tesla's stock with no assigned price target.

The Thesis

Rusch named five key points at the center of the debate between Tesla bulls and bears. 

  • Margins. Bulls would argue Tesla's Model 3 is approaching a "critical benchmark" in disrupting the transportation industry, while bears highlight a history of production inefficiencies that do not bode well for sustainable operating cash flows.
  • Competition. Bulls appreciate Tesla's "impressive" market share with the Model S and Model X and a large order backlog for the Model 3. On the other hand, competition from "established automakers" like Jaguar and BMW implies 2019 will be Tesla's first "true test" year.
  • ADAS. Bulls believe Tesla can be a leader in the advanced driver-assistance systems space, but the counter argument claims Tesla is "falling behind" the competition.
  • Cash. Both bulls and bears for the most part expect Tesla to tap the capital market to help reconcile the $2.3-billion spread between its assets and liabilities.
  • Strategic partnerships. Bulls are excited that existing partnerships and potential new ones will help Tesla with capital access and geographic expansion. Bears see Tesla "pushing" suppliers and partners to meet its aggressive deadlines at the risk of "burnout."

Price Action

Tesla shares were down 4.3 percent at $354.83 at the time of publication Tuesday afternoon. 

Related Links:

Gordon Johnson Lowers Tesla Price Target To $93, Says Sales Will Suffer Between 2019 And 2020

KeyBanc Says Tesla Deliveries Tracking Above Estimates, Raises Model 3 Deliveries Forecast To 30,000 

Photo courtesy of Tesla. 

Latest Ratings for TSLA

Apr 2021Canaccord GenuityMaintainsBuy
Apr 2021Credit SuisseReiteratesNeutral
Apr 2021Goldman SachsMaintainsBuy

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings


Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Colin Rusch electric cars Model 3 Model S Model X OppenheimerAnalyst Color Analyst Ratings Best of Benzinga

Latest Ratings

CMRXHC Wainwright & Co.Maintains18.0
PZZAStephens & Co.Maintains115.0
STAACanaccord GenuityMaintains150.0
DGIICanaccord GenuityMaintains25.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at