Tesla, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ronald Jewsikow from Guggenheim maintained a Sell rating on the stock and has a $175.00 price target.
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Ronald Jewsikow’s rating is based on a combination of factors, primarily centered around Tesla’s ambitious Robotaxi and Full Self-Driving (FSD) initiatives. While Tesla’s CEO, Elon Musk, has announced the public launch of Robotaxi operations in Austin and the upcoming FSD model v14, Jewsikow remains cautious about the timelines and market reactions. The market’s mixed signals, with Tesla shares rallying alongside ride-hailing competitors like Uber and Lyft, suggest that investors are enthusiastic about Tesla’s potential but may be overlooking certain risks.
Jewsikow expresses skepticism about Tesla’s ability to meet its autonomy timelines, despite the positive investor sentiment. The fact that Tesla’s Robotaxi operations have only reported one safety concern so far is a positive sign, but the lack of a clear timeline for removing safety drivers raises concerns. Additionally, while the new FSD model with 10x parameters promises improvements, it is still in early access and not yet available to the broader market. These uncertainties contribute to Jewsikow’s decision to maintain a Sell rating on Tesla’s stock.
In another report released yesterday, Wells Fargo also maintained a Sell rating on the stock with a $120.00 price target.