Tesla

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target by $10 to $210, based on a 2025 P/E of 54.5x, justified by long-term growth expectations. We cut our adjusted EPS views by $0.20 to $2.55 for 2024 and by $0.15 to $3.85 for 2025. TSLA posted Q1 adjusted EPS of $0.45 vs. $0.85 (-47%), shy of the $0.50 consensus. Revenue fell 9% to $21.30B ($960M below consensus) and gross margin contracted 200 bps to 17.4% (90 bps above consensus). TSLA said Cybertruck production lifted to over 1K units/week in April and its earnings slides featured a preview of technologies in development, including a ride-hailing app, humanoid robot, AI computing, and full self-driving. TSLA also said it would accelerate the launch of new vehicle models ahead of its previously-communicated start of production. […]

By Rebecca Elliott Tesla Chief Executive Elon Musk sought to assuage Wall Street’s concerns about the company’s strategic direction by underscoring the automaker’s commitment to making less-expensive electric cars. On the company’s Tuesday earnings call, Musk said Tesla was accelerating the launch of new models, including vehicles that sell at more-affordable prices. His comments cap a dismal start to the year for the world’s most-valuable automaker, which saw its first-quarter profit plunge to its lowest level since 2021. Tesla’s operating margin narrowed significantly, dropping to 5.5% in the first three months, from 11.4% a year earlier. Musk also emphasized the importance of Tesla’s achieving its longstanding — and thus far elusive — goal of developing an autonomous car. He shared new details about the company’s plans for a dedicated robotaxi model and ride-hailing network, saying Tesla would operate its own fleet and allow customers to deploy their vehicles for the

Tesla (TSLA) has cut its newly established marketing team as part of broader company layoffs, Bloomberg reported Monday, citing people familiar with the matter. The “growth content” team in the US, led by senior manager Alex Ingram and comprising about 40 employees, was dissolved as part of job cuts, the people told Bloomberg. The company has a smaller marketing team in Europe, the report said, citing one person. There were also significant job reductions in Tesla’s design studio and Hawthorne, California staff, according to the report.

Tesla (TSLA) Chief Executive Elon Musk is under pressure to provide concrete plans to fix some major concerns that have been looming over its stock in next week’s earnings call, Wedbush analysts said Friday in a note to clients. “If Musk is flippant again and there is no adult in the room on this conference call with no answers then darker days are ahead,” the Wedbush analysts said. Tesla’s crucial conference call will take place Tuesday, April 23, after the market closes and after Tesla releases its Q1 earnings results. The EV maker has several issues to address to its investors, most notably its negative growth trend in China where competition is becoming stiff, Wedbush said. Analysts from Morgan Stanley echo this sentiment, saying China may have already won the cheap EV race. “New models are important for Tesla and we expect half a dozen or so different ‘shapes’ and

Tesla is undergoing a thesis-changing shift, one that could push the stock towards a potentially painful transition in ownership base, according to Deutsche Bank in a research note. Tesla’s high likelihood of pushing out its Model 2 will create significant earnings and free-cash-flow pressure on estimates in 2026 and beyond, say the analysts. This ties Tesla’s future to cracking the code on full driverless autonomy with its Robotaxi, “which represents significant technological, regulatory and operational challenges,” the analyst says. They think certain investors who focus on Tesla’s volume and cost advantage may potentially throw in the towel and be replaced by AI/tech investors with longer time horizons. Deutsche Bank downgrades Tesla to hold and cuts the price target to $123 from $189. Shares fall 3% to $150.76 in early trading.

Tesla (TSLA) investors need clarity from Elon Musk on the company’s cost-cutting rationale, strategy, product roadmap and vision amidst weak global demand, Wedbush said in a note Monday. The investment firm added that without clear communication, investors may lose confidence and choose to sell their shares given the demand headwinds in 2024. There were reports earlier on Monday that the company has decided to reduce headcount globally by more than 10%. Musk must outline Tesla’s growth strategy, particularly in China, to reverse this negative demand trend, according to the note. “This is a crucial few months ahead for Musk and Tesla to give the [Wall Street] its blueprint for growth into 2025,” the firm said. Wedbush reiterated its outperform rating on Tesla with a price target of $300.

Tesla’s (TSLA) job cuts reported by media outlets represent “another dark day” for the electric vehicle maker following a first-quarter delivery miss and the overall pressure on the business, Wedbush Securities said Monday. Tesla will lower its global headcount by more than 10% in a bid to cut costs, media outlets reported Monday, citing an e-mail sent to employees by Tesla Chief Executive Elon Musk. “Over the years, we have grown rapidly with multiple factories scaling around the globe,” resulting in duplication of certain roles and job functions, Musk reportedly wrote. “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.” Drew Baglino and Rohan Patel, who was Tesla’s policy chair, are no longer with the company, Electrek reported. Tesla didn’t respond to MT Newswires’ request for comment. The company’s shares

Tesla’s (TSLA) future is a “bit murky now” that requires Chief Executive Elon Musk to give a “clear roadmap” to the Street with Model 2 as the main component of that “strategic vision,” a research note from Wedbush Securities said following the electric vehicle manufacturer’s plans to unveil its Robotaxi on Aug. 8. Model 2 is a critical element in Tesla’s growth story as a sub $30,000 price point will help drive mass demand globally, Wedbush analysts, including Daniel Ives, said in the note late Thursday. About 60% of the company’s growth in the next few years will come from Model 2, which was set to hit the roads by late 2025 or early 2026. “If robotaxis is viewed as the ‘magic model’ to replace Model 2 we would view this as a debacle negative for the Tesla story,” Ives said in the note. “It would be a risky gamble

Tesla stock is set to drop for a second consecutive day, as investors balance weak sales data and hope from CEO Elon Musk. Early Thursday trading, brings key technical support back into view. Tesla stock was down 0.9% in premarket trading at $170.28 while S&P 500 and Nasdaq Composite futures were down about 0.3%. Telsa stock finished 2.9% lower on Wednesday, along with many other auto stocks, after the March inflation report showed prices rose faster than expected, hurting chances for Federal Reserve interest rate cuts later in the year. Tesla investors also had to digest weak sales data coming from China. Sales in the first week of April amounted to just 1,880 units, down 89% week over week and down 86% month over month, according to industry data tracked by Citi analyst Jeff Chung. In March, the electric vehicle giant sold about 62,000 vehicles in China, or about 4,800

By Emily Bary Curiosity swirls around the company’s product priorities; it’s unclear if it will cancel its low-cost vehicle plans, for example Tesla Inc. is dealing with a host of challenges – some of its own making – and that could keep its stock at bay, according to a Jefferies analyst. “Most issues affecting core auto performance appear self-inflicted and should keep returns well below potential for the coming 24 months,” wrote Jefferies analyst Philippe Houchois, as he cut his price target to $165 from $185 and maintained a hold rating. Tesla (TSLA) is due to post earnings on April 23, and that report comes with “recurring questions about product priorities and leadership,” Houchois added. He expects to see a heavily negative cash burn for the first quarter, though not enough to cast doubt on Tesla’s ability to finance its projects. Shares were off nearly 3% in morning trading Wednesday.

Leading electric vehicle company Tesla Inc (NASDAQ:TSLA) could be putting more emphasis on highlighting its driver-assistance tools. According to an analyst, Tesla’s full self-driving (FSD) software and potential remain robust. The Tesla Analyst: Piper Sandler analyst Alexander Potter had an Overweight rating on Tesla and lowered the price target from $225 to $205. The Analyst Takeaways: Estimates were cut for Tesla by Potter after weaker-than-expected first-quarter vehicle deliveries and a challenging demand outlook in 2024 and 2025. While 2024 and 2025 could be challenging for Tesla, Potter highlighted the FSD software potential for Tesla. “TSLA is our lowest-conviction Overweight-rated stock over the next year,” Potter said. “However, we still think TSLA warrants a place in clients’ portfolios, especially for growth-oriented investors who are eager to take advantage of sell-offs in the coming few quarters.” The analyst saw the long-term optimism is due to FSD software from Tesla, which could have gross margins of more than 50%.