Tesla Inc. (TSLA)
Tesla Inc. (TSLA) faced significant backlash from investors and analysts following CEO Elon Musk’s much-anticipated presentation on Thursday night, showcasing the company’s driverless robotaxis. While Musk’s charisma and vision are often infectious, this particular event left many stakeholders feeling underwhelmed and skeptical.
During the 20-minute presentation at Warner Bros. studio, Musk showcased a prototype of the sleek, silver “Cybercab” and promised that the popular Model 3 and Model Y vehicles would operate autonomously in California and Texas by next year. He also outlined plans to begin production of the fully autonomous Cybercab by 2026, priced under $30,000, and introduced a robovan designed to transport up to 20 people.
However, the details provided were vague, lacking the substantive roadmap that investors were hoping for. Musk’s claims about transforming urban landscapes—“turning parking lots into parks”—were met with skepticism, and his introduction of dancing humanoid robots, which Tesla plans to sell for $20,000 to $30,000 each, seemed more theatrical than practical.
Analyst Coverage Update
Following the event, Tesla’s stock plummeted nearly 9%, reflecting investor disappointment. Analysts have revised and confirmed their ratings in light of their take on the event and its future impact.
- Barclays: Maintained a Hold rating with a target price of $220.
- Piper Jaffray: Kept a Buy rating but adjusted the target to $310.
- STA Research: Downgraded to a Strong Buy with a target of $260.
- HSBC Securities (USA): Issued a Sell rating with a target of $124.
- Roth MKM Partners: Maintained a Neutral stance with a target of $85.
- Needham & Company: Kept a Hold rating at $210.
- Goldman Sachs: Maintained a Neutral rating with a target of $230.
Analyst Consenus
Currently, the average analyst target price for Tesla Inc. stands at $217.94 over the next 12 months, with an average rating classified as Buy. Stock Target Advisor’s analysis leans slightly bullish, indicating 8 positive signals against 5 negatives. Tesla’s stock closed at $238.77, with a recent change of -0.79% over the past week and a 5.57% uptick over the last month.
Imapct & Outlook
While Musk’s grand vision for Tesla remains ambitious, the lack of concrete details during the recent presentation has raised doubts about the company’s trajectory toward becoming a leader in autonomous driving and artificial intelligence. Investors and analysts alike are now awaiting more substantial developments that can provide clarity on Tesla’s long-term strategy and profitability. As the company prepares for future milestones, how it addresses these concerns will be crucial in regaining investor confidence.
STA Research is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI.
