Analyst Ben Kallo of Robert W. Baird maintained a Hold rating on Tesla, retaining the price target of $320.00.
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Ben Kallo has given his Hold rating due to a combination of factors impacting Tesla’s performance. One of the primary concerns is the slight miss in Q2 deliveries, which fell short of the already lowered consensus estimate. This shortfall, coupled with a year-over-year decline of approximately 13%, raises questions about potential brand damage, possibly linked to external factors such as political activities. Additionally, the company’s margins are expected to remain weak, partly due to the ongoing impact of ramping up new Model Y production.
Another factor influencing the Hold rating is the absence of a more affordable vehicle in Tesla’s lineup, which is seen as crucial for returning to volume growth. Despite some stabilization in certain markets, several regions continue to show weaker performance year-over-year, supporting concerns about brand perception. Furthermore, the ability to secure rare earth magnets is anticipated to be a significant topic in Tesla’s upcoming discussions, adding another layer of uncertainty to the company’s outlook.
In another report released on June 30, Barclays also maintained a Hold rating on the stock with a $275.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is neutral on the stock.