Needham analyst Chris Pierce has reiterated their neutral stance on TSLA stock, giving a Hold rating today.
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Chris Pierce’s rating is based on a combination of factors, primarily focusing on Tesla’s current challenges and future prospects. The auto segment of Tesla’s business is experiencing stress, with a noticeable lack of demand rebound, particularly evident in regions with high electric vehicle adoption like California. This situation is compounded by the immediate availability of the refreshed Model Y, which undermines the argument for pent-up demand.
On the other hand, Tesla’s advancements in autonomous driving and robotics present promising opportunities. The company has been optimistic about its autonomous driving platform and the potential for its rideshare service, along with the expansion of Tesla Robotics. Despite these positive developments, Pierce believes that these future growth areas are already largely reflected in Tesla’s current stock price. Consequently, for significant upside potential, Tesla would need to achieve substantial growth, trading at a multiple of future adjusted EBITDA, which justifies the Hold rating.
According to TipRanks, Pierce is an analyst with an average return of -21.6% and a 24.85% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Tesla, CarMax, and Sonic Automotive.
In another report released today, Truist Financial also reiterated a Hold rating on the stock with a $280.00 price target.