Bank of America just raised its EUR/USD forecast
On Wednesday, TD Cowen analysts adjusted their outlook on Tesla stock (NASDAQ:TSLA), lowering the price target from $388.00 to $330.00. Despite the reduction, the firm maintains a Buy rating on the electric vehicle giant, which currently commands a market capitalization of $765 billion. The analysts cited a "better-than-feared quarter with comforting conference call updates" as part of their rationale. According to InvestingPro data, analyst targets for Tesla range widely from $120 to $515, reflecting the market’s divided outlook on this volatile stock. They acknowledged that Tesla is facing near-term challenges such as brand perception, tariffs, and broader economic factors, but expressed confidence in the company’s future due to new electric vehicle (EV) and autonomous vehicle/robotics initiatives. With annual revenue reaching $97.7 billion and a relatively high P/E ratio of 106, Tesla continues to trade at premium valuations. InvestingPro analysis shows the stock is currently trading slightly above its Fair Value, with 18 additional key insights available to subscribers.
Elon Musk, Tesla’s CEO, has indicated that he will reduce his time commitment to the cryptocurrency Dogecoin starting next month. This move may allow him to focus more on Tesla’s ambitious projects, including the anticipated June launch of Tesla’s RoboTaxi service. The service is expected to expand to other cities later in the year and aims for a larger scale deployment by mid-2026. Furthermore, Tesla has confirmed that it is on track to roll out unsupervised Full Self-Driving (FSD) capabilities to personal vehicles by the end of the year, which is a key element of the firm’s bullish thesis on Tesla.
The analysts also highlighted Tesla’s progress on producing more affordable vehicle models, with production anticipated to begin in the first half of 2025. In addition, the company’s Optimus robot pilot production is on track for 2025, targeting an annual run-rate of 1 million units by approximately 2030. Tesla’s Cybercab, another innovative project, remains on schedule.
TD Cowen analysts concluded their remarks by noting Tesla’s ability to contain the quarter-over-quarter auto decremental margin to 16%, viewing it as a sign of the company’s resilience in a challenging economic landscape. The company maintains a gross profit margin of 17.86%, though InvestingPro identifies this as relatively weak compared to industry peers. For deeper insights into Tesla’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Tesla Inc. reported its Q1 2025 earnings, revealing that both earnings per share (EPS) and revenue fell short of analyst expectations. The company reported an EPS of $0.27, missing the forecasted $0.42, and revenue of $19.34 billion, below the anticipated $21.4 billion. Despite these figures, Tesla’s stock saw a notable increase in aftermarket trading. The company achieved a record gross profit in its energy storage segment, which helped offset some challenges faced in its automotive division, such as reduced deliveries and factory updates. In terms of future developments, Tesla is pushing forward with its autonomous vehicle and robot initiatives, with plans to launch its Robotaxi in Austin and continue the development of its Optimus humanoid robot. Analyst firms like New Street and Deutsche Bank (ETR:DBKGn) have shown interest in these advancements, highlighting the company’s focus on innovation. Additionally, Tesla’s CEO, Elon Musk, emphasized the importance of large-scale autonomous cars and robots in shaping the company’s future.
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