On Thursday, Truist Securities revised its price target for Tesla (NASDAQ:TSLA) stock to $351 from the previous $360, while maintaining a Hold rating on the shares. The adjustment follows Tesla's announcement of fourth-quarter delivery numbers, which fell short of expectations. Tesla, currently trading at $381.30 with a market capitalization of $1.22 trillion, has seen its stock take a significant hit over the past week, dropping over 11%.
According to InvestingPro analysis, the stock is currently trading above its Fair Value. Truist Securities analyst William Stein pointed out that Tesla's reported deliveries for the fourth quarter of 2024 stood at approximately 495,600 vehicles, which was not only below the expectations set by their model but also under the anticipated figures from the buy-side and slightly lower than the FactSet consensus of 497,500 units.
Despite these challenges, InvestingPro data shows Tesla maintains a 'GOOD' overall financial health score, with particularly strong metrics in profitability and price momentum.
Tesla's delivery count, which marked a 7.1% year-over-year increase, also did not meet the "expressed consensus" estimate of about 506,800 units as outlined by the management. The company's production for the same period was reported at 459,400 vehicles, which was significantly lower by 12.7% compared to Truist Securities' model, and also below the delivery figures, indicating an inventory reduction during the fourth quarter.
The firm's decision to lower the price target is based on a Discounted Cash Flow (DCF) analysis, which has now been adjusted in light of the recent delivery and production data. Despite the decrease in the price target, Truist Securities continues to hold their rating at Hold, suggesting a neutral stance on the stock's near-term movement.
Tesla's latest delivery and production figures have provided a snapshot of the company's performance as it concludes the fourth quarter of 2024. The report from Truist Securities gives investors a revised expectation for the electric vehicle maker's stock value based on the most recent operational results.
In other recent news, Tesla's financial performance and strategic initiatives have been the subject of recent analyst reports. Tesla's Q4 delivery numbers fell short of expectations, with 495,600 vehicles delivered, marking the first time the company has seen an annual decline in delivery volumes. Despite this, Wedbush Securities maintains high confidence in Tesla's ability to ramp up delivery growth, anticipating a 20%-30% target delivery growth for the company.
Oppenheimer analysts, however, expressed concerns over Tesla's cash generation and EBITDA trajectory, anticipating that 2024 might mark a second consecutive year of declining operating income and EBITDA. They also noted Tesla's Full Self-Driving (FSD) technology lags behind competitors, potentially reducing consumer interest.
Meanwhile, Truist Securities maintained its Hold rating on Tesla, emphasizing the critical role of Tesla's Full Self-Driving (FSD) technology in the company's long-term success. They noted improvements in the FSD technology but also pointed out noticeable imperfections.
In other company news, Envirotech Vehicles completed its acquisition of Maddox Industries, expanding its footprint in the automotive parts sector. Tesla also maintained its Reduce rating as HSBC flagged missed targets, maintaining a cautious approach towards Tesla's ambitious growth and innovation plans.
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