Ron Jewsikow, Guggenheim's automotive equity research director, broadcasts a bearish perspective on Tesla (NASDAQ:TSLA) with a 'Sell' rating and a target price of $175. Citing concerns about the company's auto gross margins, Jewsikow predicts that Tesla will underperform Wall Street's revenue expectations due to promotional strategies to boost volume growth. Additionally, he emphasizes potential regulatory challenges in the company's ambitious plans for robotaxis and self-driving technology, despite CEO Elon Musk's connections to political leaders. Wall Street shares a cautious outlook, projecting modest sales growth for Tesla in 2025.
Tesla was quite promotional in the fourth quarter to try and hit their volume growth targets for the year, and as a result, the revenue per vehicle essentially is going to be quite a bit weaker than the Street is forecasting.
We would push back that the vast majority of the bottlenecks on Tesla's kind of pathway to robotaxis and self-driving vehicles is going to come in the form of state and local regulators.
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