Tesla ($TSLA) has received mixed reactions from Wall Street analysts following its Q4 earnings report. While some see strong potential in the company’s AI and robotics ambitions, others are concerned about weak margins and a lack of concrete details on future vehicle plans. Here’s what analysts are saying:
Morgan Stanley: Tesla’s Future Lies Beyond Cars
Rating: Overweight (Reiterated)
Price Target: $430
Analyst: Adam Jonas
Morgan Stanley remains bullish on Tesla, viewing it as more than just an automaker. Analyst Adam Jonas believes Tesla is evolving into a leader in AI and robotics, expanding its market far beyond traditional automotive. As AI transitions from software to real-world applications, he sees Tesla gaining a competitive edge in industries that investors have yet to fully consider. While the road ahead may be unpredictable, Jonas expects 2025 to be a year when investors better appreciate Tesla’s broader ambitions.
Truist Securities: Caution Amid Optimism
Rating: Hold (Maintained)
Price Target: Raised to $373 (from $351)
Analyst: William Stein
Truist Securities remains cautious, citing Tesla’s weak average selling prices (ASPs) in Q4, which hurt revenue, margins, and earnings. Analyst William Stein criticized Tesla’s earnings call, saying CEO Elon Musk focused more on future potential rather than addressing immediate concerns. Stein pointed out two major missing details: Tesla’s plans for new vehicles in 2025 and clear milestones for its AI projects, particularly Full Self-Driving (FSD). Despite these concerns, Truist raised its price target slightly, reflecting some long-term optimism.
RBC Capital: Positive on Tesla’s Roadmap
Rating: Outperform (Reiterated)
Price Target: $440
Analyst: Tom Narayan
RBC Capital remains optimistic about Tesla’s future. Analyst Tom Narayan highlighted Tesla’s Q4 inventory reduction, although it came at the cost of discounts that affected margins. However, he reassured investors that Tesla is still planning to release affordable new models in early 2025. Additionally, Tesla aims to launch a paid, fully autonomous robotaxi service in Austin by June and is working to get approval for unsupervised FSD in Europe and China this year. Tesla’s Optimus robot is also expected to enter service in 2024, with a major production increase in 2025.
Other Brokers
Wells Fargo raised its price target on Tesla ($TSLA) from $125 to $135 while maintaining an Underweight rating.
Needham reiterated its Hold rating without providing a price target.
Cantor Fitzgerald maintained a Neutral rating and raised its price target from $365 to $425.
Baird maintained an Outperform rating but lowered its price target from $480 to $440.
