- Tesla (TSLA) shares fell 1.28% to $232.84, with Piper Sandler cutting its target to $450 from $500 due to lower 2025 delivery expectations tied to factory shutdowns and Model Y changeover, yet still viewing the stock as undervalued based on a $300+ discounted cash flow valuation excluding robots and AI.
- Cantor Fitzgerald upgraded Tesla to ‘Overweight’ with a $425 target, citing a 45% year-to-date drop as an entry point, fueled by 2024 revenue of $97.7 billion and growth from FSD expansion, a June 2025 robotaxi launch, and new vehicles like the Semi Truck and Optimus Bots.
- California’s initial approval for Tesla’s robotaxi service marks progress in its autonomous ambitions, though further steps are needed, aligning with analysts’ optimism about its transformative potential in transportation and energy despite short-term delivery hiccups.
Tesla (TSLA) stock is navigating a complex landscape, with shares dropping 1.28% to $232.84 on Thursday, reflecting a mix of market recalibration and operational hurdles, yet brimming with long-term potential as analysts weigh in. Piper Sandler trimmed its price target to $450 from $500, a nod to lowered 2025 delivery expectations driven not by political winds but by factory shutdowns and the Model Y changeover—practical speed bumps in Tesla’s relentless march toward remaking transportation and energy. Analyst Alexander Potter notes the stock’s rollercoaster history, doubling and halving before, and sees the current $234-ish price as a bargain, especially since their discounted cash flow model still pegs a $300-plus valuation even without factoring in futuristic bets like humanoid robots or AI services. That $450 target, rooted in price-to-earnings, suggests Tesla’s core businesses – autos, energy, and Full Self-Driving (FSD) – still hold hefty value.
Meanwhile, Tesla’s ambitions are charging ahead. California’s initial green light for a robotaxi service signals a big leap toward autonomous driving, though more regulatory hoops remain before it’s street-ready by June 2025, as Cantor Fitzgerald predicts. Speaking of Cantor, they’ve bumped Tesla to an ‘Overweight’ rating from ‘Neutral,’ eyeing a $425 target – 82% above today’s level – after a 45% year-to-date slide they call an investor sweet spot. Their bullishness rests on Tesla’s packed growth lineup: FSD’s rollout in China and Europe, a cheaper vehicle, the Semi Truck, and those Optimus Bots, all layered atop 2024’s $97.7 billion revenue, which missed the mark slightly but doesn’t dim their confidence. Piper’s Potter agrees the election buzz isn’t the delivery culprit, and while quarter-to-date trends might nudge others to cut forecasts, Tesla’s knack for disruption – think energy storage and robotaxis – keeps it a heavyweight contender. At $232.84, the stock’s dip might just be the calm before another transformative storm.
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