By: Matthew Otto

Tesla’s Earnings Miss Sparks Analyst Caution

Tesla released its earnings report yesterday, revealing adjusted earnings per share of 66 cents and automotive gross profit margins of 16.3%, excluding regulatory credit sales. These figures fell short of Wall Street expectations, with analysts anticipating profits of 70 cents per share and margins around 17.5%. 

Analysts reacted to Tesla’s earnings with a sense of caution. Wells Fargo analyst Colin Langan lowered the price target from $260 to $250 per share, maintaining a Hold rating. Langan noted uncertainties in volume growth and ongoing profit margin pressures, particularly referencing a tempered ramp-up of the Cybertruck and Tesla’s decision to await macroeconomic improvement before fully advancing its Mexico plant construction. Citi analyst Itay Michaeli also rated Tesla as a Hold, reducing the price target from $271 to $255 per share. Michaeli characterized the quarter as a somewhat worse outcome and preferred staying on the sidelines until a more convincing entry point with visible near-term fundamental catalysts. Wedbush analyst Dan Ives, despite maintaining a Buy rating, described the earnings call as a mini-disaster and adjusted the target price from $350 to $310 per share, underlining the market’s concerns about falling margins and global price cuts.

 Analysts Slash Tesla Price Targets Amidst Earnings Report

• Wells Fargo analyst Colin Langan maintained an Equal-Weight rating and lowered the price target from $260 to $250.
• Canaccord Genuity analyst George Gianarikas lowered the price target from $293 to $267 while maintaining coverage.
• Morgan Stanley analyst Adam Jonas lowered the price target from $400 to $380 while maintaining coverage.
• Goldman Sachs analyst Mark Delaney lowered the price target to $235.
• Wedbush analyst Daniel Ives lowered the price target to $310 while maintaining a Buy rating.

Which Analyst has the best track record to show on TSLA?

Analyst George Galliers (GOLDMAN) currently has the highest performing score on TSLA with 7/8 (87.5%) price target fulfillment ratio. His price targets carry an average of $-4.27 (-4.03%) potential downside. Tesla stock price reaches these price targets on average within 81 days.