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On Wednesday, Truist Securities revised its price target for Tesla (NASDAQ:TSLA) stock, bringing it down to $280 from the previous $373, while keeping a Hold rating on the shares. The adjustment followed Tesla’s announcement of first-quarter deliveries that did not meet the sell-side consensus. According to Truist Securities, Tesla reported delivering 337,000 units in the first quarter of 2025, a figure that fell short of analysts’ expectations. According to InvestingPro data, Tesla currently trades at a high earnings multiple of 125.87x, with 13 analysts recently revising their earnings estimates downward for the upcoming period.
The firm’s analyst pointed out that although the delivery numbers were below consensus, they were not significantly divergent from what investors had anticipated. The emphasis for investors, as suggested by the analyst, should be on Tesla’s Full Self-Driving (FSD) updates. Truist Securities believes that the advancements in FSD technology are more critical to the long-term value of Tesla’s stock than the immediate delivery figures. With analyst targets ranging from $120 to $550, Tesla’s current price of $279.77 reflects the market’s mixed sentiment about its growth prospects. InvestingPro’s Fair Value analysis suggests the stock is currently overvalued.
Following the latest delivery update and the implications it has for the near-term earnings per share (EPS) estimates, Truist Securities has found it necessary to lower the price target. The analyst’s comments indicated a significant downward revision of the near-term EPS estimates based on the delivery data provided by Tesla for the first quarter. Despite these challenges, Tesla maintains strong fundamentals with a current ratio of 2.02 and more cash than debt on its balance sheet. For deeper insights into Tesla’s financial health and valuation metrics, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
The report from Truist Securities highlighted that despite the lower-than-expected delivery numbers for the quarter, the focus should remain on the potential of Tesla’s FSD technology. The analyst reiterated the Hold rating, suggesting that while the immediate financials may be under pressure, the company’s long-term technological developments could hold more weight in determining its market value.
Investors are now watching Tesla’s progress on FSD updates closely, as these innovations could be a key driver for the company’s future growth and stock performance. With the revised price target of $280, Truist Securities has set its expectations for Tesla’s stock value in light of the recent delivery report and the anticipated importance of FSD technology in the company’s valuation.
In other recent news, Tesla reported its first-quarter vehicle deliveries, which fell short of expectations, with 336,681 units delivered compared to a consensus estimate of 377,000. This represents a 13% decline from the previous year’s first quarter, attributed to the transition of Model Y production lines. Despite this, Tesla’s energy storage business performed robustly, with deployments increasing over 150% year-over-year, reaching 10.4 gigawatt-hours. Analyst Garrett Nelson from CFRA revised Tesla’s stock price target to $360, down from $385, while maintaining a Buy rating, citing lower anticipated automobile sales volumes. Meanwhile, Canaccord Genuity reaffirmed its Buy rating and $404 price target, noting strong demand for the new Model Y and upcoming product launches.
In related news, White House Press Secretary Karoline Leavitt refuted reports that Elon Musk plans to step down from his government role, labeling them as "garbage." The report suggested Musk would leave once his work at the Department of Government Efficiency is completed. Additionally, there are rumors that Musk may reduce his political involvement, which some investors view positively, as Tesla’s stock rebounded following these speculations. However, no official statements have been made regarding Musk’s potential shift in roles.
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