Summary
- Guggenheim Securities has a cautious outlook on Tesla
- Guggenheim gives TSLA a "Sell" rating with a $175 price target
- Analyst expects Tesla to fall short of Wall Street’s expectations on auto gross margins
- Despite ties to Trump, regulatory hurdles still expected for Tesla
- Wall Street predicts Tesla to sell 2.07 million vehicles in 2025, up 16% from 2024
Article
Guggenheim Securities automotive equity research director Ron Jewsikow recently shared a cautious outlook on electric vehicle maker Tesla (NASDAQ:TSLA) during a Market Domination segment with Yahoo Finance. Guggenheim is one of the eclectic vehicle maker’s bears, currently giving TSLA shares a “Sell” rating with a price target of $175 per share. Jewsikow expects Tesla to fall short of Wall Street’s expectations on auto gross margins excluding regulatory credits, noting that Tesla was promotional in the fourth quarter to hit volume growth targets, resulting in weaker revenue per vehicle than forecasted.
Despite Tesla CEO Elon Musk’s close ties to U.S. President Donald Trump, Jewsikow believes the electric vehicle maker still faces regulatory hurdles with some of its most important programs. He expressed the view that state and local regulators, as well as technological progress, could pose bottlenecks on Tesla’s pathway to robotaxis and self-driving vehicles. This cautious outlook from Guggenheim comes despite the perceived support from Trump’s administration.
Wall Street analysts are also adopting a cautious stance on Tesla, with forecasts indicating the company is predicted to sell 2.07 million vehicles in 2025, a modest 16% increase from its 2024 sales figures. Analyst Adam Jonas from Morgan Stanley suggested that opposition to EV incentives under a hypothetical “Trump 2.0” may have impacted volume expectations for Tesla in 2025. The overall sentiment from Wall Street appears to be one of caution towards Tesla’s performance in the coming year.
Despite the cautious outlook from Guggenheim and other analysts, Tesla continues to be a focal point for investors and industry watchers. The company’s performance in 2025 will be closely watched, especially amidst changing regulatory landscapes and technological advancements. The competition in the electric vehicle market is also intensifying, with Tesla facing challenges from established automakers and new entrants. This dynamic environment poses both opportunities and risks for Tesla as it navigates its future growth trajectory.
Investors with stakes in Tesla are advised to stay vigilant and closely monitor the company’s performance in the coming months. With fluctuating market conditions and regulatory uncertainties, Tesla’s stock price could experience volatility. Strategic decisions by Tesla’s leadership, including Elon Musk, will also play a critical role in determining the company’s long-term success. As the electric vehicle market continues to evolve, Tesla will need to adapt and innovate to maintain its competitive edge and drive sustainable growth.
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