Federico Merendi, an analyst from Bank of America Securities, reiterated the Hold rating on Tesla. The associated price target was raised to $471.00.
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Federico Merendi has given his Hold rating due to a combination of factors surrounding Tesla’s current market position and future potential. While Tesla is recognized as a leader in physical AI and autonomous driving, Merendi notes that the company’s valuation appears to be stretched at present. This assessment is based on a sum-of-the-parts analysis that considers various segments of Tesla’s business, including automotive, robotaxi, and energy generation, with a particular emphasis on the potential growth in the robotaxi and Optimus segments.
Despite the promising outlook for Tesla’s energy and robotaxi businesses, Merendi highlights some near-term challenges, particularly in the North American auto segment, where incentives have expired. These challenges, coupled with increased operational expenses related to growth initiatives, contribute to the Hold rating. The revised price objective of $471 reflects a balance between these growth prospects and the current valuation concerns.
In another report released on October 23, Goldman Sachs also maintained a Hold rating on the stock with a $400.00 price target.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is neutral on the stock.