William Blair analyst Jed Dorsheimer has maintained their neutral stance on TSLA stock, giving a Hold rating today.
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Jed Dorsheimer has given his Hold rating due to a combination of factors surrounding Tesla’s business operations and market conditions. The report highlights Tesla’s advancements in battery energy storage systems, which have shown significant growth in deployments and revenue. Despite this progress, Tesla’s energy storage segment, while contributing notably to profits, still represents a smaller portion of overall sales.
Additionally, the report notes that while Tesla has made strides in energy storage and auto unit volumes, these have been counterbalanced by lower profits and the uncertain durability of regulatory credits. Dorsheimer also points out the importance of Tesla’s strategy to integrate and mitigate risks associated with its supply chain, particularly with its reliance on imported batteries from China. Until there is more clarity on these regulatory credits and supply chain risks, the Hold rating reflects a cautious approach to Tesla’s stock.