Analyst Glenn Thum of Phillip Securities maintained a Sell rating on Tesla (TSLA – Research Report), reducing the price target to $200.00.
Glenn Thum has given his Sell rating due to a combination of factors affecting Tesla’s financial performance. The company’s first-quarter results for 2025 were disappointing, with revenue and adjusted profit after tax and minority interest (PATMI) falling short of expectations. This decline was attributed to reduced auto revenue, shrinking margins from lower average selling prices, and increased operational expenses related to AI projects. Additionally, Tesla experienced a significant year-over-year drop in vehicle deliveries, marking the lowest level since the second quarter of 2022, and gross margins contracted to their lowest point since 2019.
Thum also highlighted the challenges Tesla faces in maintaining its market position, particularly in China, where it is losing market share to competitors like BYD. The company’s auto revenue fell by 20% year-over-year, and average selling prices have been declining for nine consecutive quarters. Despite some growth in non-auto revenue, such as energy generation and storage, the overall outlook remains cautious. The combination of soft pricing, reduced demand, US tariffs on Chinese exports, and the removal of EV tax credits led Thum to lower the discounted cash flow target price and maintain a Sell recommendation.
In another report released yesterday, HSBC also maintained a Sell rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TSLA in relation to earlier this year.