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On Monday, Stifel analysts revised their outlook on Tesla stock (NASDAQ:TSLA), reducing the price target to $455 from the previous $474, while continuing to endorse the stock with a Buy rating. The adjustment reflects a tempered expectation for the company’s near-term vehicle deliveries, particularly concerning the new Model Y, named Juniper, and the impact of declining favorability among Democrats towards Tesla and its CEO, Elon Musk. According to InvestingPro data, Tesla’s stock has declined 34.74% year-to-date, currently trading at $263.55, with analyst targets ranging from $120 to $550.
Stifel’s analysts, led by Stephen Gengaro, have observed a significant drop in Democrats’ favorability ratings towards Tesla, which they believe could pose challenges to the company’s sales in the short term. This shift in public sentiment, as detailed by data from the Stifel Think Tank Group, has prompted the analysts to reassess Tesla’s near-term sales forecasts and consequently lower their price target. InvestingPro analysis shows that 13 analysts have recently revised their earnings downwards for the upcoming period, while the company maintains a GOOD overall financial health score.
Despite the reduced price target, Stifel’s stance on Tesla remains positive, with expectations of continued share price volatility in the immediate future. The firm’s analysts underscore their confidence in Tesla’s medium to long-term potential, which underpins their decision to reiterate the Buy rating for the stock.
The reduced price target to $455 from $474 is seen as a reflection of the current headwinds facing Tesla, including the roll-out of the new Model Y and the adverse public perception among a key demographic. Stifel’s analysts anticipate these factors to influence Tesla’s stock performance in the near term, while their long-term outlook for the electric vehicle manufacturer remains optimistic.
In other recent news, Tesla has been in the spotlight for several developments. Stifel analysts have adjusted their price target for Tesla to $455 from $474, maintaining a Buy rating despite anticipated lower near-term delivery numbers due to the introduction of the new Model Y and challenges related to CEO Elon Musk. RBC Capital has also maintained its Outperform rating with a $320 price target, citing expected lower delivery numbers for the first quarter of 2025. This is attributed to production halts for a Model Y refresh and a decline in Tesla’s performance in China and Europe. Meanwhile, Deep Water Management’s Gene Munster suggests that Tesla’s delivery numbers for 2025 will see downward revisions, with full-year deliveries potentially decreasing by about 5% year-on-year. Additionally, Tesla is dealing with legal issues as a suspect, Paul Hyon Kim, faces charges related to arson and vandalism of Tesla vehicles and a service center in Las Vegas. Despite these challenges, Tesla’s stock showed resilience by increasing 0.5% in premarket trading, contrasting with declines in other major tech companies.
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