5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Wells Fargo maintained its Underweight rating and $120.00 price target on Tesla (NASDAQ:TSLA) following the company’s recent earnings report. The stock, currently trading at $438.97 with a market cap of $1.46 trillion, appears overvalued according to InvestingPro’s Fair Value analysis.
The investment firm highlighted Tesla’s earnings per share miss, high operating expenses, and disappointing automotive gross margins excluding electric vehicle credits as key factors behind its cautious stance. InvestingPro data shows Tesla’s gross profit margin at 17.48%, confirming the margin pressure despite the company’s impressive 105.62% stock return over the past year.
Wells Fargo noted that Tesla’s automotive gross margins showed "little leverage on improved volume" quarter-over-quarter, despite higher production numbers.
The firm acknowledged that market reaction could be influenced by CEO Elon Musk’s comments during the earnings call, potentially offsetting negative sentiment from the financial results.
Tesla continues to target 2026 for volume production of its Robotaxi, while the company has not reinstated its delivery guidance, which remains withdrawn, according to Wells Fargo.
In other recent news, Tesla has announced its third-quarter 2025 financial results, revealing a mixed performance. The company reported revenue of $28.1 billion, surpassing forecasts by 7.17%. However, Tesla’s earnings per share (EPS) fell short of expectations, coming in at $0.50 compared to the anticipated $0.54, marking a 7.41% miss. Despite this, Tesla achieved all-time record deliveries and free cash flow during the quarter. Piper Sandler reiterated its Overweight rating on Tesla, maintaining a price target of $500.00 following the results. These developments highlight the company’s ongoing growth in revenue and operational achievements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.