Connect with us

Hi, what are you looking for?

Stock

Tesla looks like an ‘imbalanced VC portfolio,’ Jefferies says

Investing.com– Tesla Inc’s (NASDAQ:TSLA) recent reveal of its hotly anticipated robotaxi left investors underwhelmed, with Jefferies stating that a lack of clarity on the technology put focus back onto the electric car maker’s core operations. 

Jefferies still hiked the firm’s price target to $195 from $165, citing expectations of increased cash flow over the next two years, and maintained the stock at a Neutral rating.

But the brokerage raised concerns over Tesla’s governance and funding prospects in the medium-term. 

Jefferies said the firm’s Cybercab reveal “fell a bit flat,” citing no “tangible progress” on the technology and few details on plans to generate income through it. This brought focus back to the firm’s core auto business, which has been grappling with slowing deliveries, and is expected to log its first annual drop in deliveries in 2024. 

“Tesla remains a fascinating business in terms of innovation and drive but, more than ever, looks like an imbalanced VC portfolio solely funded by an auto business under pressure,” Jefferies analysts wrote in a note. 

The firm is set to report its third-quarter earnings after the bell on Wednesday. Tesla’s stock had tumbled earlier in October after its robotaxi reveal underwhelmed and as its third-quarter deliveries missed expectations. 

Jefferies noted that the lead in electric vehicles Tesla initially had over traditional automakers was now stagnating, and that its Chinese competitors were catching up.

The EV maker faces at least two years of “subdued growth” as its core models age and as it struggles to update its vehicle catalog, Jefferies said.

This post appeared first on investing.com






    You May Also Like

    Editor's Pick

    Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

    Latest News

    A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

    Economy

    A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

    Investing

    Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com