Wall Street analyst lowers Tesla price target to $258 due to profit margin concerns

From Nasdaq: 2024-07-26 21:56:00

Tesla (NASDAQ: TSLA) reported delivery of 444,000 vehicles in the second quarter, but profit margins dropped due to competition and price cuts. Analysts lowered price target to $258, implying a 20% gain. Despite generating $1.3 billion in free cash flow, automotive profit margin excluding credits fell to 14.6%.

Investors disappointed as Tesla’s stock sank after second-quarter earnings announcement, pushing it into negative territory for the year. Citigroup analyst unimpressed with results as automotive profit margin trends lower. Focus remains on upcoming catalysts like a new low-priced model and self-driving robotaxis.

CEO Elon Musk states investors who doubt company’s self-driving vehicle plans shouldn’t hold stock. Quarterly report highlights discrepancy between auto sales and stock valuation. Potential catalysts like energy business and self-driving fleet could add value. Investors wary of future catalysts should consider investing elsewhere.



Read more at Nasdaq: 1 Wall Street Analyst Thinks Tesla Stock Is Going to $258. Is It a Buy After a Post-Earnings Pullback?