Tesla Transitions: Phasing Out Flagship Models
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Flagship Model Phase-Out: Tesla will cease production of the Model S and Model X next quarter, with CEO Elon Musk referring to this as an 'honorable discharge,' indicating a strategic shift away from reliance on premium EV sales.
- Focus on Humanoid Robots: Musk announced that Tesla's future will center on the Optimus humanoid robot, aiming for an ambitious production target of 1 million units annually, despite market skepticism predicting only a 5% chance of release by June 30.
- Revenue Decline Risks: Tesla's revenue has dropped 3% this year, marking its first annual decline in history amid fierce competition from Chinese EV makers, raising concerns about the viability of replacing automotive revenue with Optimus sales.
- Investor Confidence Wavers: With prediction markets showing a grim outlook for Optimus, if these forecasts hold true, Tesla may face a period of maximum uncertainty, prompting investors to reconsider their exposure to Musk's ability to defy expectations.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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