TSLA -10 to 319, Tesla has plenty of bulls and bears - the next few weeks will be critical for the company as the Robotaxi rollout begins -
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Tesla to sustain upward momentum over coming weeks, says Piper Sandler
Piper Sandler analyst Alexander Potter keeps an Overweight rating with a $400 price target on Tesla but contends that the stock will likely sustain its upward momentum over the coming weeks. Driverless Teslas have been spotted on the streets of Austin, Texas and CEO Musk has acknowledged the deployment while predicting licensing agreements, with the "key component" of the firm's bullish thesis has started to play out, the analyst tells investors in a research note. Piper warns however that any high-profile robotaxi accidents would likely be met with "violent downside".
Tesla fundamentals deteriorating at 'alarming rate,' says Guggenheim
Guggenheim says that while Tesla shares continue to be driven by robotaxi and political narratives in the near-term, the company's fundamentals "continue to deteriorate at an alarming rate." The "soft" Q2 delivery trends confirm demand for the refreshed Model Y has not helped Tesla's sales momentum, says Guggenheim, which expects "sizable" negative revisions in the coming weeks to Q2 delivery estimates. The firm's 360,000 estimate is well below the consensus of 415,000. Flowing through lower delivery forecasts for Q2 pushes the company's auto gross margin forecast to 11.5%, below the 14.0% consensus, and free cash flow forecast into negative territory, the analyst tells investors in a research note. Guggenheim believes Tesla's Q2 should have benefited from pent-up demand for the Model Y refresh, suggesting future delivery volumes and/or pricing could deteriorate further. It believes 2025 and 2026 expectations for Tesla "remain incredibly optimistic and bullish catalysts for the automotive business continue to be disproven." The reiterates a Sell rating on the shares with a $175 price target. The sock in premarket trading is down 2% to $313.
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