Tesla Stock (TSLA) Gets a Price Target Boost from UBS as Robotaxis Hit the Streets
Analysts at bank UBS Group (UBS) have raised their price target on Tesla (TSLA) stock as the company launches its highly anticipated robotaxi in Austin, Texas.
Confident Investing Starts Here:
UBS took its price target on TSLA stock to $215 a share from $190 previously, saying that the company's robotaxi is worth $99 per share in value, which is nearly half of the price target. However, despite the price target bump, UBS maintained a Sell rating on TSLA stock, saying the robotaxi is already priced into the shares.
At the same time, Wedbush technology analyst Daniel Ives rode in a robotaxi and said that the experience exceeded his expectations. Ives' also issued a note about TSLA stock on June 23, the day of the official robotaxi launch in Texas. He maintained a Buy rating on the shares and Wall Street-high price target of $500 a share.
Challenges Ahead
The robotaxi launch and bullish analyst comments have TSLA stock up nearly 10% on June 23. However, while there is plenty of excitement about the robotaxis, Tesla continues to face numerous challenges moving forward, especially when it comes to sales of its electric vehicles.
Recent data showed that Tesla's electric vehicle sales fell 49% year-over-year in Europe as consumers turn away from the brand and the politics of CEO Elon Musk. Sales are also down in other jurisdictions, notably China. The Tesla brand has taken a hit from Musk's involvement with the administration of U.S. President Donald Trump. TSLA stock is down 13% on the year.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 14 Buy, 12 Hold, and nine Sell recommendations issued in the last three months. The average TSLA price target of $286.14 implies 11.18% downside from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
an hour ago
- CBC
Canada should go ahead with digital service tax despite halted trade talks: lawyer
U.S. President Donald Trump announced on Friday that he's immediately 'terminating' trade negotiations with Canada over the 'egregious' digital services tax (DST). International trade lawyer and former Canadian diplomat Lawrence Herman says implementing the DST doesn't violate any trade obligations and calls the move from Trump 'erratic.'
CTV News
3 hours ago
- CTV News
Playoff MVP Sam Bennett agrees on 8-year, $64 million contract to stay with Florida Panthers
Sam Bennett walked to the front of the stage at the Florida Panthers' latest Stanley Cup championship parade, and before he could even speak the crowd began serenading him with their request. 'Eight more years! Eight more years!' they chanted, over and over. They got their wish. Bennett — who led the NHL with 15 goals in this year's playoffs and became the first Panthers player ever to score that many in a single postseason — is staying with the back-to-back Stanley Cup champions. He and Florida agreed Friday to a new eight-year contract worth $64 million, or $8 million per season. 'Sam is a special player who has mastered a unique blend of skill and physicality in his game, becoming one of the most impactful postseason performers of his generation,' Panthers general manager and hockey operations president Bill Zito said. 'He played an integral role in our two Stanley Cup championships, earning the franchise's first Conn Smythe trophy and is a dedicated contributor to our South Florida community off the ice. We are thrilled that he will continue his career with the Panthers.' Bennett was the Conn Smythe Trophy winner as MVP of the playoffs, the first Florida player to ever win that award. The last time a Conn Smythe winner didn't open the following season with the same team he had that playoff run with was 1997, when goaltender Mike Vernon helped Detroit win that year's Cup — and then the Red Wings traded him to San Jose that summer. It is the first of three big decisions that the Panthers have been waiting on heading into free agency, the others being what forward Brad Marchand — a trade deadline pickup who became an enormous part of the run to this Cup — and defenseman Aaron Ekblad will do going forward. Giving the people want they want 🤝 — Florida Panthers (@FlaPanthers) June 27, 2025 The Bennett signing is another huge move by Zito, who now has eight players — all of them key parts of the team — under contract with the Panthers through at least the 2029-30 season. Bennett joins Aleksander Barkov, Matthew Tkachuk, Sam Reinhart, Carter Verhaeghe, Anton Lundell, Seth Jones and Gustav Forsling on that list. The raise is a massive one for Bennett, who just finished the final year of a four-year contract that paid him just under $18 million. He had a postseason like almost none other; the only other player to have at least 15 goals and 48 penalty minutes in the same playoff run was Pittsburgh's Kevin Stevens in 1991. He had given indications throughout this offseason process — including at a nightclub during the Panthers' days-long initial Cup celebration — that he intended to remain in Florida, but nothing got officially done until Friday. Bennett is coming off perhaps his finest season, with 25 goals and 26 assists in the regular season for a career-best 51 points. --Tim Reynolds, The Associated Press
Globe and Mail
3 hours ago
- Globe and Mail
Looking Ahead to the Q2 Earnings Season
The expectation is for Q2 earnings to increase by +5% from the same period last year on +4% higher revenues. This will be a material deceleration from the growth trend of recent quarters and will be the lowest earnings growth pace since the +4.3% growth rate in 2023 Q3. We have been regularly flagging in recent weeks that 2025 Q2 earnings estimates have been steadily decreasing, as shown in the chart below. As we have been consistently flagging, earnings estimates took a renewed hit at the start of Q2, following the early April tariff announcement. This was particularly notable for Q2, but estimates for the subsequent periods were also trimmed. While the revisions trend has notably stabilized in recent weeks, the magnitude of cuts to 2025 Q2 estimates since the start of the period is larger and more widespread compared to what we have become accustomed to seeing in the post-COVID period. Since the start of April, Q2 earnings estimates have declined for 13 of the 16 Zacks sectors (Aerospace and Utilities are the only sectors whose estimates have increased), with the biggest cuts to Conglomerates, Autos, Transportation, Energy, Basic Materials, and Construction sectors. Estimates for the Tech and Finance sectors, the largest earnings contributors to the S&P 500 index, accounting for more than 50% of all index earnings, have also been cut since the quarter got underway. But as we have been pointing out in recent weeks, the revisions trend for the Tech sector has notably stabilized in recent weeks, which you can see in the chart below. We see this same trend at play in annual estimates as well. The chart below shows the Tech sector's evolving earnings expectations for full-year 2025 A likely explanation for this stabilization in the revisions trend is the easing in the tariff uncertainty after the more punitive version of the tariff regime was delayed. Analysts began revising their estimates downward in the immediate aftermath of the early April tariff announcements but appear to have since concluded that those punitive tariff levels are unlikely to be levied, helping to stabilize the revisions trend. The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding four quarters and the coming three quarters. The chart below shows the overall earnings picture on a calendar-year basis. In terms of S&P 500 index 'EPS', these growth rates approximate to $254.14 for 2025 and $287.31 for 2026. The chart below shows how these calendar year 2025 earnings growth expectations have evolved since the start of Q2. As you can see below, estimates fell sharply at the beginning of the quarter, which coincided with the tariff announcements, but have notably stabilized over the last four to six weeks. Q2 Earnings Season Scorecard As noted earlier, we have already seen fiscal May-quarter results from 18 S&P 500 members, which we count as part of our Q2 tally. Total earnings for these 18 index members that have reported results are up +3.1% from the same period last year on +6.5% revenue gains, with 83.3% of the companies beating EPS estimates and 88.9% of them beating revenue estimates. The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context. The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context. We are not drawing any conclusions from these results, given the small sample size at this stage. But we nevertheless wanted to put these early results in a historical context. We have less than a dozen companies on deck to report results this holiday-shortened week, including Constellation Brands STZ from the S&P 500 index. Constellation produces alcoholic beverages, with a portfolio of beer-heavy products, including Modelo, Corona, and others. Constellation shares have been under pressure this year, with the stock down -27% in the year-to-date period and lagging the broader market's +3.8% gain. Constellation's core product, Modelo, is heavily indexed to Hispanic consumers, with over 50% of the brand's sales coming from this demographic group. While the labor market remains strong, consumption trends of this demographic group have been weighed down by affordability issues. Aluminum tariffs are another headwind for Constellation Brands, given the company's exposure to the industrial metal for beer cans. Among the notable recent earnings releases, market participants were pleased with the Nike NKE announcement but were less enthusiastic about the FedEx FDX report. Both companies have been big-time laggards lately, with Nike shares down -4.8% this year, even after the big post-release jump, and FedEx shares are down -18.5%. While there were undoubtedly a few 'green shoots' in the Nike release, the stock's strong positive reaction is more a function of how low expectations had been coming into the release rather than truly impressive numbers. Nike still faces multiple challenges, including margin pressure, a stagnant product portfolio, operational challenges in China (accounting for approximately 15% of total sales), and significant tariff exposure. We should note, however, that both Nike and FedEx beat top- and bottom-line consensus estimates. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report
