Reported 5 months ago
The article discusses the bearish outlook on Tesla (NASDAQ:TSLA) stock due to declining vehicle sales, falling margins, and high valuation, with a focus on Elon Musk's announcement regarding the unveiling of a Robotaxi on August 8. Despite challenges faced by Tesla in Q1, including negative cash flow and underperformance, the potential of AI technology, particularly in the autonomous vehicle segment, could impact the stock's performance. Analysts view Tesla as a Hold with a target price of $174.60, suggesting a 6.4% downside potential. The article concludes that while Robotaxi and autonomous vehicles offer significant potential, the current valuation of Tesla at 70x forward earnings makes it a risky investment.
Source: YAHOO