Bitcoin price today: flat at $118k, altcoins fall as markets lock in recent gains
On Wednesday, BofA Securities sustained its Neutral rating and $305.00 price target on Tesla stock (NASDAQ:TSLA), following the electric vehicle giant’s first-quarter earnings report for 2025. The report revealed earnings per share (EPS) of $0.27, falling short of both BofA’s estimate of $0.35 and the consensus estimate of $0.38. According to InvestingPro data, Tesla currently trades at a P/E ratio of 116.65, reflecting its premium valuation as a leading automotive innovator with a market capitalization of $765.43 billion.
Tesla’s gross margin for the quarter stood at 16.3%, which, despite being negatively influenced by increased incentives and lower average selling prices for its vehicles, exceeded BofA’s expectation of 15.1%. However, the company’s operating expenses saw an uptick due to heightened investments in artificial intelligence (AI) and other research and development (R&D) initiatives.
The combination of these factors resulted in an operating income of $399 million, which was below BofA’s projection of $857 million. BofA Securities analyst John Murphy commented on the financial outcomes, noting that while the gross margin was better than anticipated, the overall results were impacted by the higher operational costs and lower-than-expected operating income.
Murphy’s statement highlighted the balance between Tesla’s growth narrative and the broader market uncertainty, as well as considerations regarding the company’s stock valuation. Despite the mixed financial results, BofA Securities has chosen to maintain its stance on Tesla stock without altering the price target or rating.
Investors and market watchers will continue to monitor Tesla’s performance as it navigates the challenges of market fluctuations, cost management, and its ambitious R&D investments. Tesla’s stock market performance and future earnings reports will further inform analysts’ ratings and price targets.
In other recent news, Tesla’s first-quarter financial results have drawn mixed reactions from analysts. The company reported earnings per share (EPS) of $0.27, which fell short of expectations, with analysts at Evercore ISI and Goldman Sachs noting the shortfall against anticipated figures. Evercore maintained an In Line rating with a $235 price target, while Goldman Sachs kept a Neutral stance with the same price target, highlighting potential risks due to tariff impacts and increased operating expenses. Meanwhile, Piper Sandler reiterated an Overweight rating with a $400 target, expressing confidence in Tesla’s future initiatives, including the launch of robo-taxis and more affordable vehicle models.
Truist Securities maintained a Hold rating with a $280 price target, adjusting its 2026 EPS estimate downward but keeping the target unchanged based on a discounted cash flow analysis. The firm cited weaker than expected energy storage sales and higher operational costs as contributing factors. Despite these challenges, CEO Elon Musk’s announcements about refocusing on Tesla and upcoming product launches, such as the Robotaxi service in Austin, have provided some reassurance to investors. Tesla’s Model Y variant remains on track for a 2025 launch, and the company is also planning a two-stage Model Y launch in North America and China.
Overall, while Tesla faces some financial hurdles, analysts recognize the company’s potential for future growth through strategic product developments and technological advancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.