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  • 7 reasons one analyst says it’s time to buy Tesla after its stock crash

    Tesla giga Shanghai
    Tesla electric vehicles outside the company’s Shanghai gigafactory.

    Zhang Hengwei/China News Service via Getty Images

    • Tesla stock was upgraded to ‘Overweight’ by Cantor Fitzgerald amid its sharp decline.
    • Analyst Andres Sheppard cites Tesla’s future projects like its Robotaxi and autonomous vehicles as growth drivers.
    • Sheppard maintains a $425 price target, seeing 81% upside potential from the stock’s current levels.

    It’s been a tough few months for Tesla, but even with the stock down 52% from its record high in mid-December, one analyst on Wall Street still sees the sharp correction as an opportunity.

    Analysts at Cantor Fitzgerald led by Andres Sheppard upgraded the stock to”Overweight” from “Neutral” in a note on Wednesday, arguing that the recent share price decline represented an “attractive entry point” for investors.

    “We believe the recent selloff represents an attractive entry point for investors with >12-month investment horizon (and who are comfortable with volatility,” Sheppard wrote.

    He listed seven material catalysts that he sees boosting the stock in the long term. Those include:

    1. “The introduction of Robotaxi segment (June 2025).”
    2. “Rollout of FSD in China (started in 1Q25).” FSD refers to Tesla’s Full Self-Driving software package, which costs $8,000 per vehicle.
    3. “Rollout of FSD in Europe (we expect 1H25 pending regulatory approval.”
    4. “Introduction of lower-priced vehicle in 1H25 (we expect initial price of ~$30,000 inclusive of tax credit.”
    5. “High volume production of Optimus Bot (2026).”
    6. “Initial deliveries of Optimus to customers (we expect 4Q26E/1H26).”
    7. “Introduction of Semi Truck.” The firm said it expects the truck to start production in the second half of this year or early 2026.

    Sheppard wrote that his bullishness on Tesla was crystallized after he visited the company’s Gigafactory and AI data centers in Austin, Texas.

    While the analyst does see headwinds for Tesla’s vehicle sales in the first quarter, noting CEO Elon Musk’s “polarizing politics,” he predicted future revenue upside from the company’s other endeavors, including self-driving vehicles and its energy storage business.

    Regarding Tesla’s self-driving ambitions, Sheppard believes they can quickly take market share once they launch a network of Cybercabs, which is expected to begin in June in Austin.

    “Waymo’s vehicles have reported >25M cumulative autonomous miles driven on public roadways as of 12/2024,” the analyst wrote. “Tesla on the other hand, has reported >3B cumulative autonomous miles driven (on supervised Full Self Driving).”

    Sheppard also said that Tesla should benefit from the Trump administration’s plans to establish a regulatory framework for self-driving vehicles in the US.

    Sheppard maintained his $425 price target for Tesla, representing a potential upside of 81% from current levels. Shares of the EV maker jumped about 4% on Wednesday to $235.01.

    Read the original article on Business Insider

  • 4 reasons why Tesla’s 53% stock crash is accelerating today

    Collage of Elon Musk, Tesla building and downward arrow

    Smith Collection/Gado; Maja Hitij/Getty Images; Alyssa Powell/BI

    • Tesla stock is barreling towards an eighth straight weekly drop, falling another 7% on Tuesday.
    • Shares have now plummeted 53% from record highs reached in mid-December.
    • There were two new reasons for continued Tesla selling, and two evergreen issues weighing on shares.

    Tesla investors are having another rocky day, with shares down as much as 7%.

    The stock is heading for an eighth straight weekly loss, and now sits 53% below all-time highs reached in mid-December.

    As each day passes, the list of headwinds facing the EV maker seems to grow. In addition to existing pressures, Tuesday saw Tesla investors face fresh competition from China and an analyst price-target cut.

    Detailed below are the four forces — two new, two evergreen — driving the acceleration in Tesla’s share-price decline.

    1. BYD’s new battery tech

    Chinese firm BYD unveiled an EV-charging station that it claims can deliver up to 400 kilometers of driving after just five minutes of charging. This would be a big step up from current charging technology, with Tesla’s quickest version providing a 275-kilometer range after 15 minutes of charging.

    The development creates another headwind for Tesla as it tries to break into Chinese market.

    BYD plans to build 4,000 of these chargers across China.

    2. Wall Street scaling back forecasts

    Though RBC maintains an “outperform” rating on Tesla, it cut its price target to $320 from $440.

    Analyst Tom Narayan expects lower pricing on Tesla’s full-self-driving technology as autonomous offerings become increasingly standard across the EV industry. Meanwhile, given heightened competition in Europe and China, Narayan lowered robotaxi-penetration assumptions.

    “As a result, we now lower our market share assumption to 10% from 20% in both markets,” he wrote.

    RBC’s adjusted forecast adds to a growing string of downgrades plaguing Tesla. Last week, JPMorgan lowered its price target by about 41% to $135 per share, citing lower guidance on vehicle deliveries.

    3. Slowing vehicle sales worldwide

    Sales data this year is bolstering market gloom, with consumers sidestepping Tesla in favor of other EV competitors.

    China shipments of Tesla vehicles fell 49% year-over-year in February. The company sold 30,688 Chinese-made vehicles, its lowest sale since August 2022.

    A similar trend is showing up in Europe. January Tesla purchases in the region fell 45% from a year ago, compared to a 37% jump in overall European EV sales. The pattern continued into February, with sales in Germany falling by 76%.

    4. A distracted CEO

    Irritation is also growing with Tesla’s leadership, as investors question the priorities of CEO Elon Musk.

    Musk — whose firebrand image as a tech innovator helped propel the stock to past records — seems increasingly distant from the company, minting cynics out of Tesla’s old-time bulls.

    In large part, investors have blamed his growing role in the Trump administration, with Musk heading the efforts of the Department of Government Efficiency. He himself has noted “great difficulty” in dividing his attention between DOGE and his many companies, a statement investors were likely unhappy to hear.

    “We think shareholders have legitimate concerns about Elon Musk being spread too thin, and it’s become clear he’s now spending more time on DOGE than anything else,” CFRA senior equity analyst Garrett Nelson previously told BI.

    Read the original article on Business Insider

  • 3 retail investors explain why they’re sticking with Tesla after its $800 billion wipeout

    Photo illustration of a Tesla Car.

    Getty Images; Jenny Chang-Rodriguez/BI

    • Tesla’s steep stock decline hasn’t shaken the faith of some retail investors.
    • Business Insider spoke to three investors who said they already bought the dip in Tesla shares after its huge drop.
    • Most of them brushed off the $800 billion swoon as an “overreaction” and said they’re holding.

    Tesla stock is trading nearly 50% lower than its December peak, but the $800 billion wipeout hasn’t deterred retail investors who say they’re holding through the pain — and that they see the stock’s dramatic decline as an opportunity to keep buying.

    Retail investors Business Insider spoke to brushed off the latest sell-off as an overreaction, even as big-money investors grow concerned about Tesla’s EV business and the impact of Elon Musk’s political ambitions and other side projects.

    Tesla shares edged up 3% early Friday, trading around $248, but they’re still down nearly 50% from the all-time high of $479.86 in December.

    Neil Rozenbaum, a retail investor who first bought Tesla stock in 2019, said he isn’t scared by the recent wipeout. He says he’s well accustomed to volatility and describes the decline as an overreaction from traders.

    “I’ve experienced sell-offs before, whether it’s Tesla or another company, so it doesn’t really scare me that much,” he told BI in an interview.

    Rozenbaum said he bought around $10,000 worth of Tesla stock last Friday, when Tesla posted its seventh straight week of losses and before Monday’s 15% crash.

    But Rozenbaum says he isn’t worried about his bet despite a decline in Tesla sales in recent months.

    He’s also bullish on other initiatives the company has in the pipeline. In particular, he’s betting that sales could see a boost this year if Tesla releases a refreshed Model Y.

    Asked about Musk’s political activity, which some investors are starting to feel is a liability for the brand, Rozenbaum wasn’t concerned.

    It would take a lot for Rozenbaum to sell his stake in Tesla. He won’t consider it unless there’s a significant deterioration in its business, or if Elon Musk steps down as CEO, he said.

    “I like the guy, which is probably why I bought shares. I mean, I bought Tesla shares because he’s the leader. I don’t think anyone else would’ve made Tesla that big, to be honest. So yeah, I’d say I’m a fan of what he’s doing.”

    Fabian Varcianna invested in Tesla for the first time in 2022. He also said he wasn’t ready to give up on the stock. Despite the bearish talk around Tesla’s sales, he’s bullish on the company’s AI endeavors and its full self-driving software, which he believes is ahead of the competition. Critics of the tech “have never done proper research,” he told BI.

    Varcianna said he bought around $24,000 worth of Tesla stock over multiple days in the last week.

    Like Rozenbaum, Varcianna wasn’t too concerned about Elon Musk’s involvement in the new administration, particularly within the Department of Government Efficiency. Musk’s juggling of his responsibilities across his various companies and in the White House reflects how hard-working he is, Varcianna said.

    “I’m not a fan of any human being. However, he doesn’t worry me. He’s the world’s richest man, not by mistake,” he added.

    Varcianna isn’t keen on selling his stock, but he’ll consider doing so if Tesla shares drop below $200 a share over the next six weeks, which would be about 20% lower than the price on Friday.

    “I have profits from the past few years in Tesla. I am not in a rush to sell,” he said.

    Bilaal Dhalech, a trader who says he’s been invested “on and off” in Tesla since 2023, said he snapped up another $4,000 worth of Tesla stock on Monday, the day Tesla shares declined 15%.

    “I’ll probably buy more if it goes down,” he told BI.

    Dhalech said he was a little concerned by Tesla’s falling car sales, but he’s too bullish on the company’s other endeavors for that to matter much. He pointed to potential developments within Tesla’s Robotaxi service, as well as its humanoid robot, Optimus.

    “To be honest, I’m not a huge fan of Tesla’s EVs,” he said. “My bullish outlook is more on the AI and autonomous side of the business.”

    Dhalech was more concerned about the time Musk was spending in Washington than the other retail investors Business Insider spoke to, but even then, he doesn’t place too much importance on Musk’s role in politics.

    “While it’s unfortunate that he doesn’t have more time to focus on Tesla, that’s the reality of running multiple companies,” he said. “I don’t let politics or public opinion distract me from recognizing an opportunity. Tesla stock is down 50%, and that’s a chance to make money.”

    Dhalech, though, is wary of how high the stock can go. If Tesla soars back to its all-time high, or sees significant delays with its robotics and autonomous driving projects, he says he plans to sell a “good chunk” of his stake.

    Ideally, he’d also love to see Musk step back from the White House.

    “I’d also love to see Elon shift his focus away from DOGE by the end of the year,” Dhalech said.

    Read the original article on Business Insider