Glenn Thum, an analyst from Phillip Securities, maintained the Sell rating on Tesla. The associated price target is $220.00.
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Glenn Thum has given his Sell rating due to a combination of factors impacting Tesla’s financial outlook. Despite Tesla achieving record quarterly auto deliveries, this growth was largely driven by the impending expiration of the US$7,500 EV tax credit, suggesting that future demand may decline. Additionally, Tesla’s gross margins have contracted due to increased vehicle costs and reduced regulatory credit revenue, which has negatively impacted profitability.
Furthermore, Tesla is facing significant challenges in the Chinese market, where it is losing market share to competitors like BYD. Although non-auto revenue has seen substantial growth, these segments are not yet contributing significantly to the overall revenue. With high valuations and multiple headwinds, including tariffs and the loss of tax credits, Glenn Thum remains cautious about Tesla’s near-term prospects, maintaining a target price of US$220.
In another report released on October 23, J.P. Morgan also maintained a Sell rating on the stock with a $150.00 price target.
TSLA’s price has also changed dramatically for the past six months – from $285.880 to $460.550, which is a 61.10% increase.