On Friday, Truist Securities adjusted its price target on Tesla stock (NASDAQ:TSLA), bringing it down to $351 from the previous $360, while maintaining a Hold rating on the shares. The adjustment came after Tesla reported its fourth-quarter deliveries and production figures, which did not meet expectations. The stock, currently trading at $385.72, has experienced significant pressure, dropping over 12% in the past week according to InvestingPro data.
Tesla announced that its fourth-quarter unit deliveries reached approximately 495,600, a 7.1% increase year-over-year. However, this number was 4.4% lower than Truist Securities' model and slightly below the FactSet consensus of 497,500 units. It also fell short of the management's expected consensus of around 506,800 units.
The fourth-quarter production was reported at 459,400 units, which was 12.7% below Truist's model and also lower than the deliveries, indicating an inventory reduction during the quarter. With a market capitalization of $1.24 trillion and trading at a P/E ratio of 96, Tesla appears overvalued based on InvestingPro's Fair Value analysis.
The lower-than-anticipated production and delivery numbers prompted Truist Securities to revise their model for Tesla. As a result, their forecast for the company's CY26 earnings per share has been slightly reduced. The updated discounted cash flow (DCF) analysis led to the new price target of $351.
The updated analysis by Truist Securities reflects the immediate outcomes of Tesla's reported production and delivery performance for the fourth quarter of 2024. The firm's decision to maintain a Hold rating suggests a neutral stance on the stock's near-term growth potential. The revised price target is now one of the latest financial metrics investors may consider as they assess Tesla's stock performance on the market.
In other recent news, Tesla's fourth-quarter delivery figures have been the subject of various analyst reports. Canaccord Genuity raised their price target on Tesla to $404, maintaining a Buy rating despite the company's recent delivery miss. Analysts at the firm believe that Tesla's valuation is justified due to the company's potential for significant growth in areas such as electric vehicles, autonomy, artificial intelligence, energy storage, and robotics.
Goldman Sachs, on the other hand, maintained a Neutral rating and a $345.00 price target for Tesla following the release of the company's fourth-quarter vehicle delivery and production numbers. The firm anticipates that moving forward, the focus will be on several key areas including vehicle delivery volumes, non-GAAP gross margins in the automotive sector, advancements in Full Self-Driving capabilities, the Energy segment's performance, and progress with the Optimus project.
Stifel reiterated a Buy rating for Tesla stock, with a steady price target of $411.00, despite Tesla's fourth-quarter production and delivery figures presenting a slight disappointment. Stifel analysts reaffirmed their belief that Tesla's progress in Full Self-Driving technology and the launch of the Cybercab will be key factors driving the company's stock performance in 2025.
On a philanthropic note, Tesla CEO Elon Musk recently donated 268,000 shares of his company to undisclosed charities, continuing his tradition of end-of-year charitable contributions.
Lastly, Truist Securities revised its price target for Tesla stock to $351 from the previous $360, maintaining a Hold rating on the shares following Tesla's announcement of fourth-quarter delivery numbers which fell short of expectations.
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