Tesla stock holds steady as Oppenheimer maintains Perform rating

Investing.com - Oppenheimer has reiterated its Perform rating on Tesla (NASDAQ:TSLA), currently trading at $332.56, following the electric vehicle maker’s recent earnings report. While the company showed better-than-expected automotive gross margins, overall gross margins stand at 17.66% with revenue reaching $95.72B. According to InvestingPro analysis, Tesla is currently trading above its Fair Value, with a P/E ratio of 174.79.

The research firm noted that Tesla management emphasized the company’s autonomous and artificial intelligence future during its earnings call, while avoiding questions about a potential investment in xAI. Management also indicated that a new Master Plan is currently being written. InvestingPro data shows Tesla maintains strong financial health with a current ratio of 2.0, suggesting ample resources to fund its AI initiatives.

Oppenheimer pointed out that the timing for Tesla’s humanoid robot production ramp remains fluid as the company finalizes its Optimus 3.0 design. The firm also observed that while autonomy data suggests performance improvements and parameter expansion, regulatory hurdles persist across multiple geographies.

The research firm believes Tesla is "navigating an evolving policy environment effectively" and views the company’s decision to delay the ramp of a lower-cost vehicle until after US EV tax credits expire as "prudent to maximize volumes."

Oppenheimer has increased its gross margin estimates, primarily for Tesla’s energy storage business, as well as its operating expense estimates, but remains "on the sidelines looking for increased visibility to tangible AI leadership and monetization."

In other recent news, Tesla has adjusted its capital expenditure forecast for 2025, now planning to spend over $9 billion, which is below the average analyst estimate of $10.16 billion. This change follows Tesla’s mixed second-quarter results, where the company reported revenue of $22.5 billion and earnings per share of $0.40, aligning closely with consensus estimates. Automotive gross margins, excluding zero-emission vehicle credits, improved to about 15%, surpassing analyst expectations. Despite these results, Mizuho (NYSE:MFG) reiterated its Outperform rating with a $375 price target, while Baird maintained a Neutral rating with a $320 target, noting stronger-than-expected profitability in Tesla’s Energy business.

UBS, however, reiterated a Sell rating with a price target of $215, citing concerns over the potential end of the $7,500 EV tax credit in the U.S., which could affect demand. Barclays (LON:BARC) maintained its Equalweight rating with a $275 target, acknowledging Tesla’s advancements in AI but warning of challenging quarters ahead. The firm recognized CEO Elon Musk’s vision of expanding Tesla’s focus beyond automotive manufacturing. Meanwhile, competition remains intense in China, and Tesla’s brand faces challenges in Europe, according to UBS.

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