Text size

Investors who thought Tesla stock’s volatility would calm down after its epic stock price rise are, apparently, wrong.

Tesla (ticker: TSLA) stock was up more than 7% in trading on Tuesday, to about $858.40 a share at the close, after three bearish Wall Street analysts increased their price targets. None, however, upgraded the stock. Still, the price changes are a small sign that even the bears acknowledge things are looking up for the electric vehicle pioneer.

Bernstein analyst Toni Sacconaghi raised his price target from $325 to $730, a 120% jump. Still, his rating remains the equivalent of Hold. His price target is about 13% below where shares are trading Monday morning.

Morgan Stanley analyst Adam Jonas is more bearish than Sacconaghi. He rates Tesla shares the equivalent of Sell. In his research reports, Jonas outlines bull, bear and base case price scenarios to help his clients understand what could happen. His prior best-case scenario valued Tesla at about $650 a share. He upped it to $1,200 on Monday, an increase of about 80% and above recent trading levels. His official price target for Tesla shares, however, went from $360 to $500.

Cowen’s Jeffrey Osborne, another bearish analyst, also increased his price target. He isn’t buying the Tesla rally though. Osborn’s target went from $280 to $290 a share, up only $10 or 3.6%. That leaves Osborne with one of the lowest target prices on Wall Street.

All analysts have been chasing the Tesla stock rally. Shares are up about 128% over the past three months. Analysts’ price targets have only increased about 60% over the same span, from about $330 to $530 a share.

It’s hard for the Street to keep up when a stock rises like Tesla has. Shares went from $650 to $970 a couple of weeks ago, before closing the week at almost $750 a share, up about 15%. Trading volume that week was incredible. The value of Tesla stock traded eclipsed its total market capitalization in about three days. It takes the average stock about 110 days to accomplish the same feat.

This past week Tesla stock rose another $50 a share, to about $800, even as the company sold more stock to the public for $767.

All of Tesla’s recent numbers are eye-popping. The stock is up more than 90% year to date as of Friday’s closing price, far exceeding comparable gains of the Dow Jones Industrial Average and S&P 500.

Not even a sluggish Chinese economy can derail Tesla’s stock rally. Apple (AAPL) warned the coronavirus outbreak would affect quarterly sales Monday. Tesla recently opened a new manufacturing facility in Shanghai.

Even as bears capitulate to Tesla’s recent move, the ratings aren’t changing. And there are target prices, like Cowen’s, that are far below recent trading levels. That means Tesla shares will remain controversial and volatile.

Write to Al Root at allen.root@dowjones.com