Guggenheim analyst Ronald Jewsikow reiterated his “Sell” rating on Tesla (TSLA) stock. Jewsikow noted that Tesla’s recent updates on its robotaxi plans from CEO Elon Musk could boost near-term optimism but were not enough to change his cautious stance. His price target of $175 implies a massive 48% downside potential from current levels.
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Why Is Guggenheim Bearish on Tesla Stock?
Over the weekend, Tesla CEO Elon Musk said the company’s Robotaxi service in Austin will open to the public next month. Jewsikow said Musk’s announcement was earlier than most investors expected and a sign of confidence, given the positive feedback from invite-only riders who have tested the service.
The analyst also noted Musk’s confirmation that the next Full Self-Driving (FSD) version, v14, will have 10 times more parameters. He believes this could support the bullish case for Tesla’s plan to turn its fleet into a network of autonomous robotaxis, especially with possible gains in computing performance.
The analyst called the Austin public launch a key step in expanding the Robotaxi concept. However, safety drivers will still be in the vehicles for now, and Musk has not given any date for removing them. He noted that bullish investors have not been bothered by the presence of safety drivers in the past and believes that view will likely remain the same.
Despite these developments, Jewsikow kept his Sell rating on Tesla stock, citing its high valuation and the uncertainty around deploying Robotaxis on a large scale.
Is TSLA Stock a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 15 Holds, and eight Sell ratings. The average Tesla price target of $360.69 implies 6.39% upside potential from current levels. Year-to-date, TSLA stock has lost 16.05%.
