On Wednesday, Truist Securities adjusted its outlook on Tesla Inc (NASDAQ:TSLA) shares, reducing the electric vehicle manufacturer's price target to $176 from the previous $176 while maintaining a Hold rating on the stock. The revision follows Tesla's announcement of first-quarter 2024 deliveries that fell short of expectations by 15.4%, as reported on Tuesday.
The shortfall in deliveries was attributed to a range of factors, leading Truist Securities to revise downward its annual unit delivery, revenue, and EPS estimates for the calendar years 2024 and 2025. Despite the near-term challenges, Truist Securities remains optimistic about Tesla's role as a significant supplier of AI technology in the long term.
The analyst from Truist Securities expressed concerns that the current pricing and demand dynamics are negatively impacting the value of Tesla's automotive business. Additionally, updates on the company's AI technology have been underwhelming, prompting the lowered price target.
Investors are advised to look out for potential catalysts that could influence Tesla's stock, such as the unveiling and sale of the company's next-generation vehicle. However, these events are not expected to occur in the near term.
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