{"id":44798,"date":"2025-01-07T19:20:59","date_gmt":"2025-01-07T19:20:59","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tesla-tsla-drops-after-bofa-downgrade-but-bulls-remain-optimistic-what-investors-need-to-know\/"},"modified":"2025-01-07T19:20:59","modified_gmt":"2025-01-07T19:20:59","slug":"tesla-tsla-drops-after-bofa-downgrade-but-bulls-remain-optimistic-what-investors-need-to-know","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tesla-tsla-drops-after-bofa-downgrade-but-bulls-remain-optimistic-what-investors-need-to-know\/","title":{"rendered":"Tesla (TSLA) drops after BofA downgrade, but bulls remain optimistic: what investors need to know"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Tesla (TSLA) shares fell on Tuesday after a Bank of America analyst downgraded the stock from Hold to Buy. <\/p>\n

TSLA was trading 3.91% lower at 12:26 pm after showing some erratic behavior in early trading.<\/p>\n

Meanwhile, the S&P 500 was down by 0.77%.<\/p>\n

TSLA’s growth potential factored into valuation: BofA<\/h2>\n

BofA Securities analyst John Murphy downgraded Tesla to Hold from Buy, citing that much of Tesla\u2019s growth potential, including its proposed robotaxi service, is already factored into its valuation. <\/p>\n

However, Murphy raised his price target to $490 from $400, suggesting a potential 17% upside from Monday\u2019s closing price of $411.05. <\/p>\n

He previously upgraded Tesla in April when the stock traded near $160.<\/p>\n

So-called business execution risk is high, said Murphy. Tesla still has to make its autonomous-driving software\u2014Full Self Driving, or FSD\u2014better than humans, something CEO Elon Musk believes will happen early this year.<\/p>\n

What TSLA bulls say<\/h2>\n

Contrastingly, New Street Research analyst Pierre Ferragu had on Monday upgraded Tesla to Buy from Hold, raising his price target to $460 from $240. <\/p>\n

Ferragu predicted re-accelerated auto growth due to the anticipated release of lower-cost models, improved cost efficiencies, and stabilizing gross margins. <\/p>\n

He foresees Tesla\u2019s automotive gross margins, excluding regulatory credits, rebounding to 16% by 2025.<\/p>\n

Meanwhile, Stifel analyst Stephen Gengaro echoed bullish sentiment, raising his target price to $492 while maintaining a Buy rating. <\/p>\n

Gengaro highlighted Tesla\u2019s progress in self-driving technology and its potential to scale robotaxi test fleets this year as key catalysts for stock appreciation.<\/p>\n

Robotaxi vision drives debate on execution risks<\/h2>\n

A significant portion of Tesla\u2019s current valuation is tied to its ambitious self-driving robotaxi plans, expected to launch in late 2025. <\/p>\n

Analysts recognize the transformative potential of this service but remain wary of execution risks. <\/p>\n

Tesla must demonstrate that its Full Self-Driving (FSD) technology is safer than human drivers\u2014a hurdle CEO Elon Musk aims to overcome in 2024.<\/p>\n

Ferragu sees Tesla’s advancements in FSD and artificial intelligence as pivotal, enabling partially unsupervised robotaxi fleets in the near term. <\/p>\n

However, Murphy warns that the road to widespread deployment remains fraught with technical and regulatory challenges.<\/p>\n

Tesla\u2019s anticipated rollout of its lower-priced \u201cModel 2,\u201d with a starting price near $30,000, is another focal point for analysts. <\/p>\n

This vehicle is expected to expand Tesla\u2019s customer base and drive growth in auto volumes. <\/p>\n

Analysts believe the Model 2, combined with continued advancements in Tesla\u2019s Power Generation & Battery Storage business, could solidify the company\u2019s market dominance.<\/p>\n

Analysts remain divided as Tesla nears record highs<\/h2>\n

Tesla stock, which has added approximately $550 billion in market value since Elon Musk announced the robotaxi initiative on Oct. 10, remains a subject of debate on Wall Street. <\/p>\n

The stock\u2019s record closing high of $479.86 and intraday high of $488.54 loom large as analysts adjust their expectations.<\/p>\n

While the average price target for Tesla has climbed from $214 in October to $309, it still trails the current trading range. <\/p>\n

Analysts agree on Tesla’s long-term potential but emphasize the importance of overcoming near-term execution risks to justify its lofty valuation.<\/p>\n

The post Tesla (TSLA) drops after BofA downgrade, but bulls remain optimistic: what investors need to know<\/a> appeared first on Invezz<\/a><\/p>\n

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(Originally posted on : Invezz ) Tesla (TSLA) shares fell on Tuesday after a Bank of America analyst downgraded the stock from Hold to Buy. TSLA was trading 3.91% lower at 12:26 pm after showing some erratic behavior in early trading. Meanwhile, the S&P 500 was down by 0.77%. TSLA’s growth potential factored into valuation: […]<\/p>\n","protected":false},"author":3947362359,"featured_media":44799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/44798"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362359"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=44798"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/44798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/44799"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=44798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=44798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=44798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}