More Cuts for Tesla Price Targets Following Poor Delivery Performance
Three investment banks have cut their price targets for Tesla in the last few days due to last quarter's performance.
Quick overview
- Wall Street analysts have cut price targets for Tesla following a disappointing quarterly report showing more cars produced than delivered.
- Tesla's recent delivery numbers have fallen short of expectations, raising concerns about the company's growth potential.
- The shift in focus from electric vehicles to projects like the Optimus robot and robotaxi service has not yet convinced investors.
- Major investment banks have reduced their price targets for Tesla, with JPMorgan predicting a significant decline in stock value.
Wall Street analysts issued multiple price target cuts for Tesla (TSLA) this week after processing a soft quarterly report that showed far more cars produced than delivered.
Tesla’s delivery numbers have been low recently, and they have not met their expected targets, leaving analysts to wonder if the company is running out of steam. They have certainly fallen out of favor since Tesla CEO Elon Musk partnered up with President Donald Trump last year and headed up the newly created Department of Government Efficiency (DOGE).
There is no denying that Tesla’s sales numbers are down, but they continue to shift their focus away from electric vehicles to their Optimus robot, the newly launched robotaxi service and their automated driving experience. Analysts and investors alike are losing faith in the Magnificent Seven company, though, and they are focused on pure sales numbers and growth in the arm of the company that many see as its central component.
Quarterly Sales Miss Continues to Hurt
Tesla did not meet its sales expectations for the previous quarter, and their quarter before that was inflated by government tax credits that were part of a closing program that many consumers wanted to take advantage of before it ended. Now Tesla has to manage to make growth happen without the tax credit program to give it a boost, and they are stuck in a market that appears to be dwindling across the globe.
New EV (electric vehicle) sales are down 26.8% from the previous year in the United States, according to the Kelley Blue Book. Those numbers are going down around the world as well, and Tesla has an uphill battle to convince customers that they need to buy new Tesla vehicles when the market is flooded with used ones.
That is likely part of the reason that company is changing their focus to other ventures. There has not been enough success in those other areas for Wall Street experts to recommend the company to investors. The top three investment banks all cut their price targets for Tesla futures in the last couple weeks.
Goldman Sachs says the price target has moved from $405 to $375, while Tesla is currently trading at $342 per share and has dropped 3% since the previous day. Truist Financial cut their target from $438 to $400, saying investors should hold on this stock.
JPMorgan was the most bearish on this stock, telling investors to sell and cutting their price target to $145. They expect the stock to tank in the coming months, and they cite large amounts of unsold vehicles with a poor ratio of produced to delivered cars that have set a new record for the company.
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