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On Wednesday, Cantor Fitzgerald analyst Andres Sheppard revised Tesla’s (NASDAQ:TSLA) price target downward to $355 from the previous $425 while maintaining an Overweight rating on the stock. The adjustment reflects a more conservative stance in the near term due to various global macro uncertainties and potential impacts on consumer demand. According to InvestingPro data, Tesla currently trades at a P/E ratio of 116.65, indicating a premium valuation, while analyst targets range from $120 to $466.
Sheppard remains optimistic about Tesla’s future, citing several upcoming milestones that could drive the company’s growth. These include the planned launch of a Robotaxi service in Texas, expected in June, followed by California, and the introduction of a lower-priced vehicle in the first half of 2025, anticipated to start at around $30,000, including tax credits. With annual revenue of $97.69 billion and a strong current ratio of 2.02, Tesla appears well-positioned to fund these initiatives. For deeper insights into Tesla’s financial health and growth prospects, InvestingPro offers comprehensive analysis with 20+ exclusive tips and metrics.
The analyst is also encouraged by Elon Musk’s announcement that he will reduce his time at DOGE starting in May, allowing him to dedicate more time to Tesla. Upcoming catalysts for Tesla identified by Sheppard include the rollout of Full Self-Driving (FSD) features in China, which began in the first quarter of 2025, and the expected release of FSD in Europe in the first half of 2025, pending regulatory approval.
Tesla’s long-term growth is expected to be driven by several key factors, including the high-volume production of the Optimus Bot slated for 2026, with initial customer deliveries anticipated in 2027, and the introduction of the Semi Truck, with Tesla expected to enter the self-driving trucking industry within this decade.
Despite the positive outlook on Tesla’s innovative ventures, the analyst acknowledges challenges such as the impact of tariffs on demand and energy storage business, and consumer backlash in response to Musk’s political stances. This backlash is particularly anticipated in China and Europe, where consumers may favor non-American products due to the tariff policies of former President Trump.
Sheppard concludes that while Tesla’s shares have fallen approximately 41% year-to-date, the current price levels present an attractive opportunity for investors with a longer-term perspective and a tolerance for volatility. InvestingPro analysis reveals a beta of 2.58, confirming the stock’s high volatility, while the platform’s Fair Value calculation suggests Tesla is currently fairly valued. Access the complete Tesla Pro Research Report, along with 1,400+ other detailed company analyses, to make more informed investment decisions.
In other recent news, Tesla has made several announcements that could impact investor decisions. The company has adjusted its capital expenditure forecast for the year, now expecting to spend over $10 billion, down from the previous estimate of over $11 billion. This reduction is attributed to potential changes in project timelines due to trade policy shifts. On the earnings front, Tesla’s manufacturing margins have surpassed expectations, although increased expenses from tariffs and operating costs have led to a downward revision of earnings per share estimates by Oppenheimer, which maintains a Perform rating on the stock.
Meanwhile, Wedbush Securities has raised its price target for Tesla to $350, citing Elon Musk’s renewed commitment to his role as CEO as a positive development. Canaccord Genuity, however, has lowered its price target to $303 while maintaining a Buy rating, highlighting Tesla’s potential for long-term growth in sectors such as electric vehicles, autonomy, and robotics. Needham has maintained a Hold rating, expressing skepticism about a demand rebound in the automotive sector despite Tesla’s optimism about its autonomous driving and robotics technologies.
These developments come as Tesla prepares for the anticipated launch of a paid ride service in Austin, Texas, and continues to advance its autonomous technology platform. Investors will be closely watching Tesla’s ability to deliver on these technological promises and manage operational costs, as these factors will likely influence the company’s performance.
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