From Yahoo Finance: 2025-04-16 13:50:00

Analysts at BNP Paribas warn that Tesla’s medium-term profit estimates could drop by 50%, leading them to lower the price target on TSLA to $137 from $150. The bank also notes concerns about Tesla’s outlook in China, negative free cash flow, and declining revenue growth, suggesting difficulties in financing AI initiatives. Tesla’s stock has climbed 3.6% in the last month but plummeted 43% in the last three months.

BNP Paribas highlights Tesla’s high price-earnings ratio of 111 times, expressing bearish sentiment on the stock’s performance. The bank emphasizes the importance of AI stocks for higher returns in a shorter timeframe, promoting an alternative “cheapest AI stock” with promising potential and lower valuation. Tesla’s recent stock performance raises concerns amid broader market volatility and shifting investor preferences.



Read more at Yahoo Finance: Earnings Estimates for TSLA Could Tumble, Bank Warns