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Investing.com - Wolfe Research has reiterated its Peerperform rating on Tesla (NASDAQ:TSLA) stock, according to a research note released Thursday. InvestingPro data shows Tesla currently trading above its Fair Value, with a high P/E ratio of 171.8x and strong financial health metrics.
Tesla shares have declined 21% year-to-date, underperforming the broader S&P 500 index which is up 8%, while competing electric vehicle maker Rivian (NASDAQ:RIVN) is down 2% during the same period.
Wolfe Research indicates that near-term Street estimates for Tesla appear high, particularly for 2025 and 2026, with free cash flow likely to remain under pressure, though growth in the company’s energy business could be a key factor. InvestingPro analysis reveals 11 analysts have revised their earnings downward for the upcoming period, with current revenue at $92.7 billion and a gross profit margin of 17.5%. Get access to 14 more exclusive ProTips and comprehensive financial analysis with InvestingPro.
The research firm highlights several upcoming catalysts related to Tesla’s Full Self-Driving (FSD) technology and robotaxi plans, including expansion of autonomous vehicle service into new U.S. markets such as San Francisco, Nevada, Arizona, and Florida.
According to Wolfe Research, Tesla plans to enable hands-free and eyes-off autonomy for FSD owners in select U.S. locations by year-end 2025, with supervised FSD expected to launch in China and Europe over the next approximately 12 months, while the Optimus robot is anticipated to enter scale production in 2026.
In other recent news, Tesla has launched its ride-hailing service in the San Francisco Bay Area, adding to its existing service in Austin. This development follows reports that Tesla plans to introduce its robotaxi service in San Francisco soon, with select Tesla owners expected to receive invitations. RBC Capital has raised its price target for Tesla to $325, citing progress in the Austin robotaxi launch as a key factor. The firm maintains an Outperform rating, indicating confidence in Tesla’s expansion plans. Cantor Fitzgerald also reiterated an Overweight rating with a $355 price target, highlighting the ongoing expansion of Tesla’s robotaxi service.
Additionally, Neuralink, another company led by Elon Musk, has joined a University of California study focused on developing an AI-powered bionic eye. This study aims to create a device that could assist blind individuals with tasks such as identifying faces and navigating outdoors. These developments reflect Tesla’s and Neuralink’s ongoing efforts to innovate and expand in their respective fields.
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