S&P 500 pulls back from record high as chip-led slump in tech weighs
On Thursday, Cantor Fitzgerald reiterated its Overweight rating on Tesla stock (NASDAQ:TSLA) with a maintained price target of $425.00. The reaffirmation comes despite Tesla’s announcement that its first-quarter vehicle deliveries for 2025 fell short of expectations. Tesla, currently trading at $282.76 with a market capitalization of $909.5 billion, reported delivering 336,681 vehicles in Q1, which did not meet the Bloomberg consensus forecast of 377,592. This figure also represents a decline from the 386,810 vehicles delivered in the same quarter of the previous year, contributing to the stock’s significant -29.98% year-to-date decline.
The majority of the deliveries consisted of the Model 3 and Model Y, totaling 323,800 units, with the remaining 12,881 units comprising other models including the Model S, Model X, and Cybertruck. In addition to the delivery numbers, Tesla also revealed that its vehicle production for the quarter amounted to 362,615 units. This production level was below the Visible Alpha consensus projection of 437,818 vehicles and marked a decrease from the 433,371 vehicles produced in Q1 of the previous year. According to InvestingPro data, Tesla maintains strong financial health with a current ratio of 2.02, indicating solid short-term liquidity despite operational challenges.
Tesla attributed the lower-than-anticipated sales in Q1 to several factors, including weaker demand in Europe and controversies surrounding CEO Elon Musk’s political activities. Moreover, the company disclosed that upgrading the Model Y production lines at all four of its factories resulted in several weeks of lost production time during the quarter. InvestingPro analysis reveals 14 analysts have recently revised their earnings expectations downward for the upcoming period, with the next earnings report scheduled for April 29, 2025.
Despite these challenges, Cantor Fitzgerald’s analyst stands by the Overweight rating, suggesting confidence in Tesla’s long-term prospects. The $425.00 price target remains unchanged, indicating the firm’s continued positive outlook on the electric vehicle maker’s stock value. Based on InvestingPro’s Fair Value analysis, Tesla appears to be trading above its intrinsic value, with a P/E ratio of 125.87 reflecting premium market pricing.
In other recent news, Tesla’s first-quarter vehicle deliveries and production figures showed a notable decline. The company reported delivering about 337,000 vehicles, which represents a decrease of 32% from the previous quarter and 13% year-over-year. Production also fell to approximately 363,000 vehicles, marking a 21% quarter-over-quarter and 16% year-over-year reduction. In Germany, Tesla’s sales volume dropped significantly by 42.5% in March, despite an overall increase in the country’s electric vehicle market. Goldman Sachs maintained a Neutral rating on Tesla with a $275 price target, while Truist Securities adjusted their price target to $280, maintaining a Hold rating. CFRA also revised its price target to $360, sustaining a Buy rating, and noted a decrease in earnings per share forecasts due to lower automobile sales volumes. Meanwhile, Tesla’s energy storage business showed strong performance, with deployments increasing over 150% year-over-year. Additionally, White House Press Secretary Karoline Leavitt refuted reports that CEO Elon Musk plans to step down from his government role, confirming his departure would only occur after completing his work at DOGE.
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