Wall Street Analysts Just Trimmed Price Targets for These 5 Stocks

03. Tesla, Inc. (NASDAQ:TSLA)

Price Reaction after the Price Target Cut: -0.86 (-0.33%)

On October 9, Jefferies analyst Philippe Houchois adjusted the outlook for Tesla, Inc. (NASDAQ:TSLA). The analyst lowered the price target from $265.00 to $250.00 while sustaining a Hold rating. As of the latest data, Tesla’s current market price is $259.67, indicating a marginal decrease of 0.3%. This revision by Jefferies Financial Group indicates a reevaluation of Tesla, Inc. (NASDAQ:TSLA) potential within the electric vehicle and automotive industry. Despite the lowered price target, maintaining a Hold rating suggests that Jefferies sees Tesla, Inc. (NASDAQ:TSLA) as likely to perform in line with market trends, without a strong recommendation to buy or sell.

Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:

Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.

We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…”  (Click here to read the full text)