Trump announces 100% chip tariff as Apple ups U.S. investment
On Thursday, Wedbush Securities maintained its Outperform rating on Tesla stock (NASDAQ:TSLA) and held steady its price target at $550.00, representing the highest among analyst targets that currently range from $135 to $550. The stock, currently trading at $360.56, has delivered an impressive 86% return over the past year despite a 10.72% decline year-to-date. The firm addressed concerns about CEO Elon Musk’s involvement with Dogecoin (DOGE), suggesting that while some on Wall Street fear Musk’s focus on the cryptocurrency might detract from his leadership at Tesla, these worries are likely overstated.
Wedbush analysts countered the bearish narrative, which has highlighted Musk’s dedication to DOGE, isolated protests, and brand concerns as potential threats to Tesla’s market position. The firm argues that these issues do not alter Tesla’s future prospects. According to InvestingPro data, Tesla maintains strong financial health with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations. According to Wedbush, the company is on track with several significant developments, including the launch of a new mass-market vehicle in the first half of 2025, advancements in autonomous driving and robotics, and the introduction of unsupervised Full Self-Driving (FSD) in Austin slated for June.
The firm’s commentary emphasized Tesla’s ongoing progress in product development and growth in electric vehicle (EV) and battery technology. Want deeper insights? InvestingPro offers 18 additional exclusive tips and a comprehensive analysis of Tesla’s financial health, valuation metrics, and growth potential in their detailed Pro Research Report, available with a subscription. Despite the skepticism surrounding Musk’s ability to juggle his various projects, Wedbush believes that the CEO has historically balanced his numerous initiatives effectively. The analysts noted that Tesla’s innovation and technological advancements are propelling the company towards a future dominated by autonomy and robotics.
In other recent news, Tesla has been ordered by a German court to address defects in its Model 3 autopilot system. The court ruled the system was unfit for normal use, citing issues with "phantom braking." In addition, Tesla’s efforts to gain regulatory approval for its full self-driving technology in China face delays, as no timeline has been provided by Chinese authorities. Meanwhile, Bridgewater Associates has added Tesla to its portfolio, purchasing 153,589 shares valued at $62 million, while reducing stakes in other major tech companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN).
Elon Musk’s artificial intelligence company, xAI, has unveiled its Grok-3 chatbot, claiming it outperforms rivals such as OpenAI’s GPT-4o. Despite these claims, independent verification is pending. xAI is also seeking to raise $10 billion in funding, potentially valuing the company at $75 billion. Existing investors, including Sequoia Capital and Andreessen Horowitz, are reportedly considering participation in this funding round. The company has already raised substantial funds in previous rounds, with its last valuation at approximately $51 billion.
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