Roth MKM keeps a Neutral rating and $85 price target on Tesla after its Q3 results and auto gross margins of 16.2% compressing from 17.5% in Q2 and 26.8% in Q3 of last year. The company has pushed its CyberTruck volume expectations into 2025 and also delayed its Mexico facility construction, with the management now prioritizing efficiency over expansion, the analyst tells investors in a research note. The firm adds that its Neutral rating “appropriately” balances how Tesla is positioned to continue executing, but it also sees the stock valued at an oversized premium to all peers in the automotive sector, with the current market valuation resting on the “specious assumption” that the hundreds of EVs slated for launch by 2025 will all be flops.
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.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on TSLA: