Name of opportunity: 👀
Tesla, Inc
Disappointing news for shareholders: 👎
After Tesla’s Q2 earnings report and quarterly call with analysts, stock has fallen by 13.98% in a week. The company had been planning a robotaxi launch event for 8 August but this has now been postponed to 10 October, to provide time to prepare prototypes. CEO Elon Musk has previously shared plans for new self-driving cars on the road operating as taxis, as well as planning for Tesla owners to be able to send their car out to pick up passengers by itself.
The Q2 earnings were also responsible for Tesla stock dropping. Profits were down 45% from this time last year - the cost for the company’s AI work have increased, while average sale prices for a Tesla vehicle have gone down. Tesla was also impacted by lower delivery numbers than last year. Overall, it reported $1.48 billion in profit this quarter, down from $2.7 billion last year.
How hot is this investment opportunity? 🔥🔥
Analysts have, overall, downgraded Tesla and on Nemo, it’s now rated a ‘Hold’. They also predict that the stock’s value will continue to fall, dropping by 15.45% in the next 12 months, reaching an average target price of $182.63. This prediction is based in part on the Q2 earnings, which did not meet analyst estimates on several counts. The news that Tesla is behind its own timeline on the robotaxi project will also not have helped improve analysts’ outlook for the stock.
Some analysts simply believe that Tesla stock is currently overvalued, at a price that does not reflect its current potential for future earnings and growth.
EV market instability:⚡
Tesla, a company whose stock we have covered many times on Hot Stocks, is one of the Magnificent Seven (some of the biggest global tech brands, whose stock investors and analysts alike watch with great interest). Tesla is also one of the market leaders in the electric vehicle space, a complex market which in some ways is thriving with new technology developments. However this market is experiencing some difficulties in Tesla’s home country of the US, with slow adoption of EVs by the general public, and noticeable problems with charging infrastructure.
Which neme?: 🔍
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