The artificial intelligence (AI) boom has begun, and Wall Street is very bullish. Bank of America and RBC Capital Markets recently raised their year-end price targets for the S&P 500 (SNPINDEX: ^GSPC), and Goldman Sachs called the index undervalued. All three financial instit
A short trading week still managed to deliver volatility to the equity markets. The primary catalyst was the employment outlook. The ADP report on Thursday showed job growth that was double the analysts’ projection. But the Jobs Report on Friday showed a slight miss.
The China Association of Auto Manufacturers (CAAM), citing antitrust law, on Saturday retracted a pledge to avoid "abnormal pricing" made two days earlier by 16 automakers, including Tesla..
Disruptive investing has stood out in the stock market for years, driving significant growth in the S&P 500. Whether via Tesla (TSLA) pushing the envelope in electric vehicles or e-commerce names like Shopify (SHOP) challenging physical retailers, disruptive names have outperformed the disrupted. However, the disruptive investing regime may no longer surprise the market, according [...]
Read more at ETFtrends.com.
Shares of Rivian Automotive surged more than 18% on Friday as it continued to rally after the electric vehicle (EV) maker reported better-than-expected quarterly deliveries early this week.
What happened
After a tumultuous year so far, Rivian Automotive (NASDAQ: RIVN) stock is making a stunning comeback. The elective vehicle (EV) stock jumped 13.1% in June, according to data provided by S&P Global Market Intelligence, but that rally may have confirmed its bottom
What happened
After falling consistently over the past few months, shares of Nio (NYSE: NIO) bounced back swiftly to gain a solid 28.7% in June, according to data provided by S&P Global Market Intelligence.
The benchmark S&P 500 inched higher on Friday in choppy trading after a mixed employment report signaled resilience in the labor market in the face of the Federal Reserve's aggressive monetary tightening.
Tesla (
NASDAQ:TSLA
) stock has risen significantly (see the chart below) so far this year thanks to its
record deliveries. However, the growth rate of
EV (electric vehicle) sales slowed in the U.S. during the first half of 2023, indicating that Tesla could implement more price cuts to stimulate demand. This could pressure margins further and limit the upside in its stock price.
Citing data from
Motor Intelligence, a
Wall Street Journal report highlighted that EV sales increased by 50% in the first half of 2023 compared to a 71% increase in the first half of 2022. Furthermore, the first-half sales growth rate was lower than the 65% increase in EV sales in 2022.
The moderation in sales growth rate has led to an increase in unsold EV inventory at dealerships. This comes as a surprise, as Tesla and other EV makers announced price cuts and promotions to accelerate demand.
More Price Cuts on the Horizon
Tesla implemented price cuts this year to drive volumes. However, its focus on pushing volumes higher came at the cost of its margins. While Tesla boasts of industry-leading margins, these margins have consistently trended lower over the past several quarters.
Even though Tesla’s deliveries remained strong, they have trailed production numbers for the past five consecutive quarters, suggesting that the company could announce
more price cuts in the future.
Tesla’s CEO
Elon Musk is ready to let go of
some automotive margins to drive volumes. During the Q1 conference call, Musk said the company could recover margins from service, autonomy, supercharging, and improved production efficiency.
Commenting on Tesla’s deliveries and margins,
Mark Delaney of Goldman Sachs said that he expects pricing to decline further to support volume. Delaney reiterated a Hold rating on TSLA stock on July 2. He added that his Hold recommendation reflects “additional pricing reductions and full valuation.”
What is the 12-Month Price Target for Tesla?
While pressure on margins remains a concern, Tesla’s leadership in the EV space, benefits from the ramp-up in production and deliveries, and improvement in China (the world’s largest EV market) are positives. The EV giant is also expected to gain from in-house battery production, supercharging opportunities, and the launch of lower-priced models that position it well to deliver strong growth in the long term.
TSLA stock has received 13 Buy, 13 Hold, and five Sell recommendations for a Moderate Buy Sell rating. The
average TSLA stock price target of $229.31 suggests 17.08% downside potential from current levels.
Disclosure
Fintel reports that on July 7, 2023, Mizuho maintained coverage of Tesla (NASDAQ:TSLA) with a Buy recommendation. Analyst Price Forecast Suggests 24.25% Downside
What happened
Shares of Rivian Automotive (NASDAQ: RIVN) are rising yet again today. The stock of the electric truck and van manufacturer has already risen for the past seven days. Today's jump comes as one prominent analyst updated his firm's price target. The stock was higher b
New electric vehicles from Tesla and rivals are being engineered for efficiency in a way that cuts copper content, changes that could limit demand growth for the metal as the next-generation of EVs hits the road, industry analysts say.
The S&P 500 and the Dow slipped on Friday after latest data signaled resilience in the labor market in the face of the Federal Reserve's aggressive monetary tightening.
Wall Street's main indexes were set to open slightly lower on Friday after latest data signaled resilience in the labor market in the face of the Federal Reserve's aggressive monetary tightening.
Tesla (TSLA) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
While pure-play electric vehicle stocks have lost some of the interest seen in 2020-2021, demand continues to grow for the overall future mobility market including pure-play stocks like Tesla (TSLA) and Rivian (RIVN). On July 2, Tesla reported that it produced almost 480,000 vehicles and delivered over 466,000 vehicles in 2Q23. During that same time [...]
Read more at ETFtrends.com.
Electric car maker Tesla (NASDAQ: TSLA) surprised investors over the weekend when it reported stronger-than-expected vehicle deliveries despite a tough macroeconomic environment. The news sent the stock soaring higher. While many analysts responded to the upbeat report with upbea
The Motley Fool
Checked
7 minutes 21 seconds ago
This feed is responsible for generating the rss feed related to the topic TSLA