On Monday, Mizuho Securities maintained its Neutral stance on Tesla (NASDAQ:TSLA) with a steady price target of $230. Following Tesla's 'We, Robot' event, where the company showcased the CyberCab and Robovan, as well as provided updates on its humanoid robot, 'Optimus', the firm chose not to alter its estimates or price target for the electric vehicle maker.
The event highlighted several future projects from Tesla, including the two-seater CyberCab, expected to be available by late 2026 or early 2027, which will notably lack a steering wheel or pedals. The Robovan, designed to carry 20 passengers, was also introduced. Tesla's CEO Elon Musk expressed optimism about the future of autonomy in vehicles, suggesting it would lead to greater utility and a lower cost per mile.
Another significant reveal was the humanoid robot 'Optimus', which Musk claimed could become Tesla's biggest product ever once it reaches mass production, with an anticipated price range of $20,000 to $30,000. Despite these announcements, Mizuho did not modify its financial projections for Tesla, reiterating their Neutral rating.
The firm indicated that many investors were anticipating news of a low-cost electric vehicle that would help Tesla expand in the U.S. market and compete with China's rapidly growing BYD (SZ:002594). However, the event offered limited details on the scaling of autonomous driving technology. Mizuho also noted that with potential challenges to electric vehicle growth, WOLF, a key supplier for Tesla, might also face risks in its 2025 projections.
In other recent news, Tesla's Q3 delivery figures exceeded estimates, leading Piper Sandler to affirm its Overweight rating with a steady price target of $310. The firm is adjusting its model in anticipation of the upcoming Q3 earnings call.
Meanwhile, Canaccord Genuity maintained a Buy rating on Tesla, expressing confidence in the company's long-term vision. The firm highlighted Tesla's recent event, likened to a "robocarnival," and the unveiling of new products such as the Cybercab, Robovan, and Optimus.
Evercore ISI raised its price target for Tesla to $195, maintaining an In Line rating, despite concerns about the lack of detailed information regarding the Full Self-Driving (FSD) technology. Tesla has announced plans to launch the Cybercab in 2026 and introduce unsupervised FSD in Texas and California by 2025. In addition, Tesla has converted 500 temporary positions into permanent jobs at its German gigafactory in Gruenheide, near Berlin.
HSBC initiated coverage on Tesla with a "Reduce" rating, citing concerns about Tesla's ambitious timelines for its new ventures. Stifel confirmed its Buy rating on Tesla, despite noting a lack of detailed information about the FSD technology. RBC Capital expressed optimism for Tesla's long-term prospects, particularly regarding robotaxis and humanoid robots.
InvestingPro Insights
As Tesla continues to push the boundaries of innovation with its CyberCab, Robovan, and Optimus projects, investors might benefit from a closer look at the company's current financial position. According to InvestingPro data, Tesla boasts a substantial market capitalization of $702.02 billion, reflecting its dominant position in the electric vehicle market.
Despite Mizuho's neutral stance, Tesla's financial metrics present a mixed picture. The company's P/E ratio of 56.55 suggests a premium valuation, which aligns with the InvestingPro Tip indicating that Tesla is "Trading at a high earnings multiple." This high valuation could be justified by the market's expectations for future growth from projects like those showcased at the 'We, Robot' event.
However, investors should note that Tesla's revenue growth has slowed to 1.37% over the last twelve months, which may explain why some analysts, as another InvestingPro Tip reveals, have "revised their earnings downwards for the upcoming period." This could be a factor in Mizuho's decision to maintain its neutral rating and $230 price target.
For a more comprehensive analysis, InvestingPro offers 18 additional tips on Tesla, providing investors with a deeper understanding of the company's financial health and market position.
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