‘After a brutal few quarters, we are finally starting to see stable demand trends for Tesla,” writes Wedbush analyst Dan Ives in a report.
Tesla is downgraded to Strong Sell due to unsustainable delivery growth driven by expiring tax credits, not genuine demand. TSLA faces declining EV sales from eroding pricing power and intensifying competition, especially from Chinese EV makers, impacting margins and sales trajectory. Despite strong expected Q3 results, the stock's valuation is excessive at 116x forward cash flow and 260x adjusted EPS, with near-term risks far outweighing rewards in an unknowable future.
As Tesla prepares to report Q3 earnings, investors face a familiar mix of excitement and uncertainty. With the stock surging nearly 93% in the past sic months, expectations are high - yet tempered by Tesla's recent mixed track record.
Tesla's (TSLA 2.58%) latest move -- releasing lower-priced versions of its Model Y and Model 3 -- looks more like a reactionary action than a game-changing effort to make electric vehicles (EVs) more accessible to the mass market. It makes perfect sense in the context of where the business is right now, but it won't appease investors who are looking at Tesla purely as an EV company.
Tesla (TSLA 2.58%) might be one of the most overvalued stocks in the market today. Fueled by an excellent management team with strong marketing to investors, people believe the company will approach a multitrillion-dollar market capitalization.
"Any fool can reduce the cost of a car by making it worse and just deleting functionality."
Although Tesla (NASDAQ: TSLA) stock has been on a bullish run in recent weeks, historical data suggests that the electric vehicle manufacturer is about to enter its most profitable phase.
Tesla Inc. NASDAQ: TSLA has once again found itself at the center of a fierce market debate. After rallying almost 100% since April, the stock has stalled below recent highs and is now trading around $430.
The momentum in Tesla, Inc. stock is narrative-driven, with two imminent catalysts ahead: Q3 earnings and the November 6 shareholder meeting. Q3 experienced a significant front-loading effect, with a 29% sequential rise in deliveries and record energy storage deployment, driven by the expiring US tax credit. The setup is favorable for Q3. The Street midpoint is $26.58B for revenue (+18% seq vs. Q2) and $0.55 for EPS (+53% seq vs. Q2).
This is the second consecutive year that Institutional Shareholder Services has urged investors to reject a compensation plan for Musk.
The adviser recommends investors reject moonshot pay deal and investment in XAI.
Wall Street and everyday investors want answers on Optimus, robotaxis and new EVs ahead of third-quarter earnings.