In a report released on July 25, Jairam Nathan from Daiwa maintained a Hold rating on Tesla, with a price target of $300.00.
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Jairam Nathan has given his Hold rating due to a combination of factors impacting Tesla’s financial outlook. The primary concern is the potential risk to Tesla’s free cash flow margins, which could be affected by a decrease in demand and reduced revenue from regulatory credits. This situation may hinder Tesla’s ability to invest in its AI initiatives, including the robotaxi project, which is seen as a significant future revenue driver.
Despite the expected acceleration in robotaxi expansion, the uncertainties surrounding earnings and cash flow, particularly due to the expiration of EV tax credits and relaxed emission standards, keep the outlook cautious. Nathan also anticipates a decline in Tesla’s automotive deliveries and regulatory credit revenue for 2025, although there is some optimism with the introduction of an affordable EV model and increased energy storage revenue. These mixed factors contribute to maintaining a neutral stance on Tesla’s stock with a target price of $300.
In another report released on July 25, China Renaissance also downgraded the stock to a Hold with a $349.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is neutral on the stock.