Analyst Glenn Thum of Phillip Securities maintained a Sell rating on Tesla, with a price target of $220.00.
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Glenn Thum has given his Sell rating due to a combination of factors impacting Tesla’s performance. The company experienced a significant decline in auto deliveries, with a 13.5% year-over-year drop in 2Q25, marking a record quarterly decline. This was attributed to disruptions from model transitions, reduced demand in key markets such as the US, Europe, and China, and brand challenges linked to Elon Musk’s political controversies. Additionally, Tesla is facing stiff competition from Chinese EV manufacturers, particularly BYD, which has been gaining market share.
Despite some positive aspects, such as an increase in services revenue and an improvement in gross margins quarter-over-quarter, the overall financial outlook remains cautious. The decline in average selling prices and lower auto revenue have contributed to a decrease in adjusted PATMI by 23%. Furthermore, Tesla’s market share in China has decreased, and the company is dealing with headwinds like tariffs and the loss of tax credits. These challenges have led Glenn Thum to maintain a cautious stance and reiterate a Sell recommendation for Tesla’s stock.