Baird cuts Tesla stock price target to $440, maintains outperform

The automotive company’s efforts to expand its lineup with refreshed and more affordable vehicles are part of its strategy to maintain its competitive edge in the electric vehicle market. As Tesla (NASDAQ:TSLA) navigates these changes, the Baird analyst’s revised price target reflects a cautious yet optimistic outlook on the company’s ability to continue its growth trajectory amidst the anticipated challenges. For deeper insights into Tesla’s valuation and growth prospects, InvestingPro subscribers can access over 20 additional financial tips and a comprehensive Pro Research Report, helping investors make more informed decisions about this prominent player in the automotive industry. For deeper insights into Tesla’s valuation and growth prospects, InvestingPro subscribers can access over 20 additional financial tips and a comprehensive Pro Research Report, helping investors make more informed decisions about this prominent player in the automotive industry.

The automotive company’s efforts to expand its lineup with refreshed and more affordable vehicles are part of its strategy to maintain its competitive edge in the electric vehicle market. As Tesla navigates these changes, the Baird analyst’s revised price target reflects a cautious yet optimistic outlook on the company’s ability to continue its growth trajectory amidst the anticipated challenges. For deeper insights into Tesla’s valuation and growth prospects, InvestingPro subscribers can access over 20 additional financial tips and a comprehensive Pro Research Report, helping investors make more informed decisions about this prominent player in the automotive industry.

Despite the reduction in the price target, Kallo reinforces the view that Tesla should be considered a fundamental holding in investment portfolios. However, he acknowledges that discussions around the company’s valuation are likely to persist as a primary concern among skeptics in the short term.

Tesla’s latest financial results and the absence of projected volume growth commentary have led to a reassessment of the stock’s near-term financial trajectory. Kallo’s report suggests that investors may need to brace for a period of variability in Tesla’s performance as it undertakes significant product and production changes.

The automotive company’s efforts to expand its lineup with refreshed and more affordable vehicles are part of its strategy to maintain its competitive edge in the electric vehicle market. As Tesla navigates these changes, the Baird analyst’s revised price target reflects a cautious yet optimistic outlook on the company’s ability to continue its growth trajectory amidst the anticipated challenges.

In other recent news, Tesla has reported its Q4 and full-year 2024 financials, revealing an annual revenue of $97.15 billion. Jefferies analyst Philippe Houchois maintained a Hold rating on Tesla, noting a decrease in automotive margins due to a 6% drop in average selling prices. Despite this, Tesla demonstrated a strong free cash flow performance, aligning with the company’s strategic de-emphasis on its core automotive hardware business. Analysts from Cantor Fitzgerald and Morgan Stanley (NYSE:MS) also maintained their respective Neutral and Overweight ratings on Tesla.

Tesla’s recent developments include the unveiling of a new autonomous driving feature within its Fremont facility, a step towards Full Self-Driving capabilities. However, the feature is currently limited to a controlled environment within Tesla’s premises. Tesla, along with BMW (ETR:BMWG) and several Chinese manufacturers, is challenging the European Union’s tariffs on China-made electric vehicles.

The company is also facing a complaint from the Union of Swedish Electricians over alleged unauthorized electrical work at its charging stations. These recent developments offer investors a glimpse into Tesla’s current activities and market position.

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