Analyst Chris McNally from Evercore ISI maintained a Hold rating on Tesla and increased the price target to $300.00 from $235.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Chris McNally has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Tesla. The company’s earnings per share (EPS) came in largely in line with expectations, although there were some fluctuations due to restructuring costs. While Tesla’s gross margins showed a slight improvement, there is an anticipation of a potential decline in core automotive margins in the coming quarters due to lower production and a shift in product mix.
Additionally, while Tesla surprised with a significant free cash flow, this was largely attributed to timing factors rather than a sustainable trend. The valuation of Tesla’s stock is heavily influenced by speculative elements related to its autonomous vehicle and robotics ambitions, which adds uncertainty to its future performance. As such, McNally sees no material change in the forward model for Tesla, leading to a Hold rating as the market adjusts its expectations over the next several months.