Tesla (NASDAQ: NASDAQ:TSLA) has maintained its Hold rating from a major investment firm after the company's recent Robotaxi showcase in Los Angeles.
The event, which continued to emphasize Tesla's commitment to autonomy as a key value driver, did not alleviate concerns about the company's near and medium-term performance, particularly leading into the third-quarter earnings.
The firm also expressed caution regarding the consensus estimates for Tesla's unit sales and margins, suggesting that the current valuation could be at risk if these numbers fall short. The company's gross profit, which is closely tied to vehicle deliveries, is seen as a critical factor in its near and medium-term financial health.
Amid these concerns, Tesla's stock rating remains unchanged as the market looks forward to the company's third-quarter earnings for further indicators of its performance and strategic direction in the evolving automotive landscape.
In other recent news, Tesla continues to make strides in the autonomous vehicle industry, despite mixed reactions from analysts following recent events. Truist Securities maintained its Hold rating on Tesla, citing the lack of significant advancements in Tesla's Full Self-Driving (FSD) technology. Meanwhile, Oppenheimer maintained a Perform rating, expressing concerns over the efficiency of the company's learning cycles.
Tesla's earnings and revenue remain a focal point for investors. Morgan Stanley (NYSE:MS) maintained an Overweight rating on Tesla, despite expressing disappointment in the level of detail provided during Tesla's latest product reveal event. Barclays (LON:BARC) also maintained an Equalweight rating, while Goldman Sachs (NYSE:GS) kept its Neutral rating on Tesla, raising concerns about the lack of new information on Full Self Driving performance and the robotaxi business plan.
RBC Capital maintained its Outperform rating, showing optimism for Tesla's long-term prospects, particularly regarding robotaxis and humanoid robots. However, Bernstein SocGen Group upheld an Underperform rating on Tesla shares, citing a lack of substantive details at Tesla's recent Robotaxi event.
InvestingPro Insights
As Tesla (NASDAQ:TSLA) gears up for its third-quarter earnings report, InvestingPro data and tips offer additional context to the investment firm's Hold rating. Tesla's market capitalization stands at an impressive $762.78 billion, reflecting its dominant position in the EV market. However, the company's P/E ratio of 61.38 suggests a high valuation relative to earnings, aligning with the InvestingPro Tip that Tesla is "Trading at a high earnings multiple."
The firm's concerns about Tesla's near and medium-term performance are echoed in some InvestingPro metrics. Revenue growth has slowed to 1.37% over the last twelve months, while the EBITDA growth rate is negative at -27.34%. This data supports the cautious stance on consensus estimates for unit sales and margins mentioned in the article.
On a positive note, Tesla "Holds more cash than debt on its balance sheet," according to an InvestingPro Tip, which could provide financial flexibility as the company navigates uncertainties in its autonomous driving pursuits. Additionally, despite challenges, analysts predict Tesla will remain profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on Tesla, providing a deeper understanding of the company's financial health and market position.
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