Bank of America just raised its EUR/USD forecast
On Wednesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Tesla (NASDAQ:TSLA) stock, lowering the price target to $325 from the previous $375, while still maintaining an Outperform rating. The decision follows Tesla’s first-quarter earnings report, which fell short of Wall Street’s expectations, with revenue and earnings per share (EPS) coming in at $19.3 billion and $0.27 respectively, compared to the consensus estimates of $21.4 billion and $0.44. According to InvestingPro data, Tesla currently trades at a P/E ratio of 106, with 12 analysts recently revising their earnings estimates downward. The company maintains a substantial market capitalization of $765.43 billion, despite trading slightly above its Fair Value.
The automotive gross margins (GMs) excluding zero-emission vehicle (ZEV) credits were roughly in line with or slightly better than consensus, at approximately 12.7% versus an expected 12.3%. This performance came despite a year-over-year decrease in average selling prices (ASPs) of about 9.7% in the first quarter of 2025. Tesla has also revised its outlook for 2025, withdrawing its previous statement of "returning to growth" for the year’s deliveries. This change in guidance comes after a reported year-over-year decline of around 13% in first-quarter deliveries. InvestingPro analysis shows the company’s overall gross profit margin stands at 17.86%, with total revenue reaching $97.69 billion in the last twelve months.
Tesla’s production faced approximately seven weeks of downtime, which translated to a 13% annualized production loss due to retooling for the Model Y. However, production levels are anticipated to improve throughout the calendar year 2025. Despite the lowered estimates and price target, Mizuho’s analysis sees Tesla maintaining its lead in the U.S. electric vehicle (EV) market. This outlook is supported by the anticipation of a new low-cost EV model set to launch in June, which may help offset some market share losses in China. For deeper insights into Tesla’s financial health and market position, including over 20 exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Tesla reported its Q1 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.27, missing the forecasted $0.42, and reported revenue of $19.34 billion, below the expected $21.4 billion. Despite these misses, Tesla’s stock saw a notable increase in aftermarket trading. Additionally, Tesla is advancing its autonomous vehicle and robotics initiatives, with plans to launch its RoboTaxi service in Austin by June and expand it to other cities later in the year. The company is also on track to introduce unsupervised Full Self-Driving (FSD) capabilities to personal vehicles by the end of the year. TD Cowen analysts recently adjusted their outlook on Tesla, lowering the stock price target from $388.00 to $330.00 but maintaining a Buy rating. The firm highlighted Tesla’s resilience in a challenging economic landscape and its progress in producing more affordable vehicle models, with production anticipated to begin in the first half of 2025. Tesla’s Optimus robot pilot production is also on track for 2025, aiming for an annual run-rate of 1 million units by approximately 2030.
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