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Investing.com - Deutsche Bank (ETR:DBKGn) has maintained its Buy rating and $345.00 price target on Tesla (NASDAQ:TSLA) despite projecting second-quarter deliveries to fall short of consensus expectations. According to InvestingPro data, 8 analysts have recently revised their earnings estimates downward, with the stock currently trading at a P/E ratio of 168x.
The bank forecasts Tesla will deliver approximately 355,000 vehicles in Q2 2025, below the consensus estimate of over 380,000, representing a nearly 20% year-over-year decline but a sequential increase of more than 5% from the previous quarter. With a market capitalization of $1.03 trillion and trailing twelve-month revenue of $95.72 billion, Tesla remains a dominant force in the automotive sector. Unlock deeper insights into Tesla’s financial health with InvestingPro, featuring 20 key investment tips and comprehensive valuation metrics.
Deutsche Bank anticipates Europe could experience the largest regional decline, citing brand damage and intensifying competition, while North American deliveries are estimated to increase about 10% quarter-over-quarter, helped by the Model Y Juniper production ramp-up.
In China, Tesla deliveries are expected to decline approximately 9% year-over-year or remain flat quarter-over-quarter, with the company having already registered an estimated 109,000 units in the country through the third week of June.
The bank believes full-year consensus estimates may need further downward revision to 1.6 million vehicles or below, representing a more than 10% year-over-year decline, with expectations that Tesla management will address this during the upcoming second-quarter earnings call.
In other recent news, Tesla has initiated the operation of its V4 superchargers in China, marking a significant expansion of its charging infrastructure. The new stations are operational in several provinces, including Shanghai and Zhejiang, and will soon be available in Beijing and Guangdong. In another development, Tesla CEO Elon Musk announced the first fully autonomous delivery of a Model Y, highlighting advancements in the company’s self-driving technology. Meanwhile, a federal judge has allowed a lawsuit involving a fatal crash with Tesla’s Autopilot to proceed to trial, raising ongoing concerns about the safety of its self-driving features.
Additionally, Tesla has hired Henry Kuang, a former Cruise executive, as its new AI director, amid efforts to expand its robotaxi operations. This hiring comes alongside significant personnel changes within the company, including the resignation of two senior executives. Furthermore, TD Cowen has maintained its Buy rating and $330 price target for Tesla, despite revising its second-quarter delivery estimate downward to 362,000 vehicles from 400,000. The research firm also adjusted its earnings per share estimate for the quarter to $0.33 from $0.37, noting a "demand deferral" in the U.S. market.
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