Tesla: Navigating Challenges and Opportunities Amidst Market Shifts

Analyst Elizabelle Pang from DBS maintained a Hold rating on Tesla (TSLA – Research Report) and keeping the price target at $275.00.

Elizabelle Pang’s rating is based on a combination of factors that reflect both the challenges and opportunities facing Tesla. The company experienced a significant miss in its first-quarter earnings, attributed to declining vehicle sales and increased expenses related to artificial intelligence initiatives. This has led management to adopt a more cautious stance, especially given the uncertain tariff environment, supply chain risks, and weakening market conditions.
Despite these challenges, Tesla remains a leading player in the electric vehicle market, supported by its substantial market share and strong automotive margins. However, recent delivery figures have fallen short of expectations, and the company has lost its top position in the battery electric vehicle segment to competitors like BYD. While Tesla is making strides in AI and autonomous driving, more tangible evidence of success in these areas is needed. Consequently, Elizabelle Pang maintains a Hold rating, with a revised target price, reflecting both the potential risks and the positive catalysts that could drive future growth.