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Reactions to Tesla’s (NASDAQ:TSLA) earnings report poured in on Wednesday after the electrical automobile maker posted a pointy drop in Q1 income, deliveries, margins, and EPS from a yr in the past, however offered an replace on its plans for brand new mass-market fashions and a robotaxi platform.
Throughout Tesla’s earnings name, Elon Musk mentioned the corporate is now an AI robotics firm. “If you happen to worth us in any other case, the precise reply is unimaginable to the questions being requested. If somebody doesn’t consider Tesla will remedy autonomy, they shouldn’t be an investor within the firm,” he acknowledged. That left analysts with lots to digest.
HSBC mentioned Tesla (TSLA) displayed weak revenue and money circulate in Q1, however stored the dream of a next-gen automobile alive.
“Gen automobile seems to have morphed into one thing much less radical than beforehand indicated, however there was affirmation that extra fashions are coming, though they are going to make the most of current manufacturing footprint and a mixture of recent and current applied sciences,” highlighted HSBC analyst Michael Tyndall.
UBS reiterated a Impartial ranking on Tesla (TSLA), however minimize its worth goal to $147 from $160 on the view that near-term visibility is cloudy attributable to its pivot to AI. “TSLA took the last word bear case off the desk as there’s a new, lower-cost product coming,” famous analyst Joseph Spak. “Whereas we see enchancment from 1Q24 ranges, we see restricted progress for [the] present lineup and lack of readability on what these new automobiles might deliver,” he added. Spak and his group assume there are nonetheless a number of unanswered questions across the new low-cost automobile.
Wedbush Securities lowered is worth goal on Outperform-rated Tesla (TSLA) to $275. Analyst Dan Ives mentioned Elon Musk and the corporate made the precise determination to go together with a brand new idea that he referred to as the Mannequin 2.5., though he warned of a probably bumpy highway. “The autonomy and FSD side of Tesla is a key long term technique and whereas it faces a lot promise, this additionally brings a bunch of regulatory and know-how challenges that should be navigated over the approaching years step-by-step to attain Musk’s strategic imaginative and prescient,” he famous.
Morgan Stanley analyst Adam Jonas mentioned that whereas Tesla (TSLA) Elon Musk expects deliveries progress in 2024 and past from final yr, he thinks full yr gross sales progress might require additional worth cuts, assist from the market, and seamless execution on cheaper new mannequin introductions from right here.
On In search of Alpha, analyst Steven Fiorillo introduced the bull case on Tesla (TSLA) in a post-earnings article. Investing Group Chief Jonathan Weber stayed bearish together with his new TSLA appraisal. Analyst Invoice Maurer performed it down the center with an improve to a Maintain ranking after having TSLA set at Promote.
Shares of Tesla (TSLA) rallied 12.20% in premarket buying and selling to $161.81 after shedding 15% within the two weeks constructing as much as earnings day. The 52-week excessive for Tesla is $299.29 and shares hit a low of $138.80 on Monday.
