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Investing.com - Stifel has reiterated its Buy rating on Tesla (NASDAQ:TSLA) stock with a price target of $450.00 following the company’s second-quarter 2025 results. According to InvestingPro data, Tesla’s stock currently trades at $305.30, with analyst targets ranging from $115 to $500, reflecting mixed market sentiment.
The research firm highlighted several positive factors, including Tesla’s successful launch and expansion of robotaxis in Austin, with autonomous ride-hailing potentially reaching half of the U.S. population by year-end. Stifel also noted the start of production for Tesla’s lower-priced vehicle, expected to ramp up in the second half of 2025, though at a slower pace than originally anticipated.
Tesla’s profitability is being aided by lower cost per vehicle, partially offset by fixed-cost absorption and tariffs, according to Stifel. The firm also pointed to Tesla’s confidence in delivering Unsupervised Full Self-Driving (FSD) for personal use in certain regions by the end of 2025.
Stifel identified several challenges for Tesla, including negative sentiment on demand amid weak deliveries and the impact of tariffs on both the Automotive and Energy businesses. Other concerns include reduced focus on ramping new models in 2025 and the company’s emphasis on delivering as many vehicles as possible before the $7,500 tax credit expires.
Despite these challenges, Stifel maintained that Tesla remains "very well positioned" and emphasized that FSD and Robotaxi will be "critical value drivers" for the company going forward.
In other recent news, Tesla reported second-quarter revenue of $22.5 billion, slightly below Benchmark’s estimate of $22.6 billion but surpassing the consensus forecast of $22.1 billion. The company achieved a gross margin of 17%, exceeding both Benchmark’s and consensus estimates of 16%. Meanwhile, Cantor Fitzgerald noted Tesla’s Q2 results as "mild," highlighting that while revenue and gross margins were above expectations, free cash flow fell short by about $200 million. TD Cowen raised its price target for Tesla to $374 from $330, maintaining a Buy rating, and pointed to "encouraging AV updates" from the company’s earnings report. In contrast, HSBC reiterated its Reduce rating with a $120 price target, citing Tesla’s recurring earnings misses and potential challenges from US tariff headwinds. Benchmark kept its Buy rating and $475 price target, confident in Tesla’s performance despite the slight revenue miss. Additionally, Tesla announced a partnership with Sunrun (NASDAQ:RUN) to launch a home energy solution in Texas, combining solar and storage services with Tesla’s retail plan. This collaboration aims to offer homeowners in Texas lower electricity rates and backup power during outages.
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