Latest news with #EdisonYu
Business Insider
3 days ago
- Automotive
- Business Insider
Tesla (TSLA) Gets Bullish Forecast from Deutsche Bank Ahead of Q2 Earnings
Electric vehicle (EV) maker Tesla (TSLA) has received a bullish note regarding the second half of 2025 from Deutsche Bank analyst Edison Yu. He believes that Tesla could launch its most-anticipated low-cost EV in Q4. Yu refers to this EV as the 'Model Q,' while several others have nicknamed it 'Model 2.' Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Yu maintains a Buy rating on TSLA stock and a price target of $345, implying 4.7% upside potential from current levels. Tesla's Q2 Results Are Expected to Shine Tesla is scheduled to report its second-quarter fiscal 2025 results after the market closes on July 23. The Street expects Tesla to report adjusted earnings per share (EPS) of $0.40 on sales of $22.42 billion. For Q2, Yu now expects sales of $22.2 billion, slightly below consensus estimates. Additionally, Yu projects that automotive gross margins will improve to 14% in Q2, excluding credits, up from 12.5% in Q1. For fiscal 2025, he has raised his automotive gross margin projections to 13.8%. For reference, Tesla reported adjusted EPS of $0.52 on sales of $25.50 billion in Q2FY24. The downward trend in expectations reflects growing concerns about Tesla's declining EV sales and intense competition from domestic players in China. Tesla has missed earnings expectations in six out of the last eight quarters. Yu Is Optimistic About Tesla's Affordable EVs CEO Elon Musk has been touting the development of a low-cost EV for years, with several analysts expecting it to be launched in the first half of 2025. However, Yu believes that Tesla could roll out the affordable EV soon, potentially boosting deliveries in Q4 of this year. For the full year 2025, Yu expects total Tesla deliveries to reach 1.58 million units, down nearly 12% year-over-year and below the consensus estimate of 1.62 million units. Currently, Yu includes only 25,000 units of the yet-to-be-launched Model Q series in the total delivery forecast, calling this estimate the 'key swing factor' for Q4. Yu is also optimistic about the launch of Tesla's new six-seater EV, the Model Y Long, this fall in China. The Model Y L reportedly has a six-inch longer wheelbase, allowing for larger three-row passenger seating with six seats. In December last year, after meeting with Tesla's top executives, Yu predicted that Tesla would launch Model Q in the first half of 2025. He also cited the price of the affordable EV as less than $30,000, positioning it to compete effectively with lower-priced EVs from Volkswagen (VOW3) and BYD (BYDDF). Tesla's H2 Marked by Robotaxi and Robotics Advances Tesla's Q2 deliveries of 384,000 units exceeded Deutsche Bank's internal delivery forecast, backed by solid performance in the U.S. and international markets, even as China lagged. However, Yu believes that looking ahead, Tesla's robotaxi and robot businesses will be key value drivers for the company. Tesla launched its autonomous robotaxi service in Austin, Texas, on June 22, and has already started expanding service areas in the region. Yu expects Tesla to deploy a fleet of 1,000 robotaxis in the next six to nine months, with services expanding to San Francisco, Phoenix, and Miami. Is TSLA stock a Buy, Hold, or Sell? On TipRanks, TSLA stock has a Moderate Buy consensus rating based on 13 Buys, 13 Holds, and eight Sell ratings. Also, the average Tesla price target of $298.93 implies 9.3% downside potential from current levels. Year-to-date, TSLA stock has lost 18.4%.
Yahoo
3 days ago
- Automotive
- Yahoo
TSLA: Tesla Price Target Raised on Bold New EV and Robotaxi Expansion
July 21 - Tesla (NASDAQ:TSLA) is back in the spotlight as Deutsche Bank ramps up its bullish outlook ahead of the EV maker's Q2 earnings report, with analyst Edison Yu betting big on the company's long-awaited budget car and autonomous ambitions. Yu reaffirmed a Buy rating and raised his price target to $345, citing growing confidence in Tesla's execution on multiple fronts. A sub-$30,000 compact EV, dubbed Model Q by Yu, is expected to debut in Q4 and could be a key delivery driver into year-end. Tesla will report second-quarter on July 23. Yu is predicting $22.2 billion in revenue and a better automotive gross margin of 14 percent instead of 12.5 percent in Q1 earlier. That lags Street revenue forecasts, but indicates greater operating effectiveness. The analyst also believes that Tesla will increase its production in China to six-seater Model Y Long which was introduced recently and she forecasts full year deliveries as 1.58 million units which is slightly lower than the consensus. In the meantime, the autonomous drive of Tesla is becoming popular. It opened a robotaxi pilot in Austin that is already in operation, and Yu predicts that within a year, it will have 1,000 vehicles in the largest U.S. cities, starting the new leg of growth in addition to the regular EV sales. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Automotive
- Yahoo
TSLA: Tesla Price Target Raised on Bold New EV and Robotaxi Expansion
July 21 - Tesla (NASDAQ:TSLA) is back in the spotlight as Deutsche Bank ramps up its bullish outlook ahead of the EV maker's Q2 earnings report, with analyst Edison Yu betting big on the company's long-awaited budget car and autonomous ambitions. Yu reaffirmed a Buy rating and raised his price target to $345, citing growing confidence in Tesla's execution on multiple fronts. A sub-$30,000 compact EV, dubbed Model Q by Yu, is expected to debut in Q4 and could be a key delivery driver into year-end. Tesla will report second-quarter on July 23. Yu is predicting $22.2 billion in revenue and a better automotive gross margin of 14 percent instead of 12.5 percent in Q1 earlier. That lags Street revenue forecasts, but indicates greater operating effectiveness. The analyst also believes that Tesla will increase its production in China to six-seater Model Y Long which was introduced recently and she forecasts full year deliveries as 1.58 million units which is slightly lower than the consensus. In the meantime, the autonomous drive of Tesla is becoming popular. It opened a robotaxi pilot in Austin that is already in operation, and Yu predicts that within a year, it will have 1,000 vehicles in the largest U.S. cities, starting the new leg of growth in addition to the regular EV sales. This article first appeared on GuruFocus.
Yahoo
13-05-2025
- Automotive
- Yahoo
Car dealers shield buyers from tariff price hikes in April
The April Consumer Price Index (CPI) report revealed new car prices were flat, a surprise as many felt President Trump's auto sector tariffs would boost prices. But inventory at dealerships may have shielded car buyers from tariff price hikes, at least for now. In April, new vehicle prices came in at no change from the previous month and up 0.3% year over year. Used vehicle prices were down 0.5%, and up 1.5% from a year ago. The report comes on the heels of Trump's 25% foreign-made auto tariffs that began on April 3, affecting not only European and Asian manufacturers, but also Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), which import vehicles from Canada and Mexico, as well as a few models from China. The expectation was for new vehicle prices to climb higher, reflecting the passing of tariff costs on to consumers, as well as a concurrent hike in used vehicle prices as buyers shifted to preowned vehicles. A big reason price hikes were minimized could have been dealers and automakers eating into their preexisting new car inventory, which includes imports that were not tariffed. Dealers were not shy about promoting tariff-free inventory to buyers as a sales tactic in the competitive new car sales landscape. Not surprisingly, the number of cars on the lot is shrinking. Vehicle data and buying site CarPro reports that overall industry stock in April dropped to 2.6 million vehicles from around 3 million, with days of supply falling to just over 60. The average is around 70 days of supply, CarPro said, with different manufacturers maintaining different levels. For instance, Toyota (TM) has around 10 to 15 days of supply, whereas GM maintains around 50 to 60 days. Stellantis, during its troubled summer of 2024, had over 100 days' supply in the US, though that has come down substantially. Meanwhile, Hyundai (up 19%), Honda (up 17%), Ford (up 15%), and Toyota (up 8%) saw huge sales gains in April. (Note: GM and Stellantis do not report monthly sales.) Another reason why prices may have stayed unchanged is that several automakers, including Hyundai, guaranteed pricing through the end of May, CarPro said. The firm also said shipments will soon be tariff-exposed, and further supply and pricing pressures are expected in the weeks ahead. The question is how long the automakers can hold the line on prices. 'Across OEMs, we continue to monitor post-tariff reactions, with GM saying that it will not raise prices across the board but continue to see consistent pricing (up 0.5%-1.0% for the year), and Ford extending employee pricing on most vehicles until July 4 (vs. June 2 previously) while hiking prices on Mexico-built vehicles,' Deutsche Bank's Edison Yu wrote in a note Tuesday morning. Kelley Blue Book (KBB), which tracks average transaction prices (ATP) at the dealership level, actually saw prices climb 2.5% month over month in April, more than double the average monthly move in April. A KBB spokesman told Yahoo Finance that timing and different data sources may have led to the deviations between KBB's numbers and the government's CPI reading. CPI data may be a bit older than KBB's, the spokesman said, meaning CPI data may be more of a trailing indicator than KBB's. With tariffs on foreign-made autos still on the table, prices are expected to rise, meaning April's lack of change in pricing may be a blip. As Deutsche Bank noted above, Ford is already raising prices on its Mexican-built Ford Maverick, Bronco Sport, and Mustang Mach-E EV. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
13-05-2025
- Automotive
- Yahoo
Car dealers shield buyers from tariff price hikes in April
The April Consumer Price Index (CPI) report revealed new car prices were flat, a surprise as many felt President Trump's auto sector tariffs would boost prices. But inventory at dealerships may have shielded car buyers from tariff price hikes, at least for now. In April, new vehicle prices came in at no change from the previous month and up 0.3% year over year. Used vehicle prices were down 0.5%, and up 1.5% from a year ago. The report comes on the heels of Trump's 25% foreign-made auto tariffs that began on April 3, affecting not only European and Asian manufacturers, but also Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), which import vehicles from Canada and Mexico, as well as a few models from China. The expectation was for new vehicle prices to climb higher, reflecting the passing of tariff costs on to consumers, as well as a concurrent hike in used vehicle prices as buyers shifted to preowned vehicles. A big reason price hikes were minimized could have been dealers and automakers eating into their preexisting new car inventory, which includes imports that were not tariffed. Dealers were not shy about promoting tariff-free inventory to buyers as a sales tactic in the competitive new car sales landscape. Not surprisingly, the number of cars on the lot is shrinking. Vehicle data and buying site CarPro reports that overall industry stock in April dropped to 2.6 million vehicles from around 3 million, with days of supply falling to just over 60. The average is around 70 days of supply, CarPro said, with different manufacturers maintaining different levels. For instance, Toyota (TM) has around 10 to 15 days of supply, whereas GM maintains around 50 to 60 days. Stellantis, during its troubled summer of 2024, had over 100 days' supply in the US, though that has come down substantially. Meanwhile, Hyundai (up 19%), Honda (up 17%), Ford (up 15%), and Toyota (up 8%) saw huge sales gains in April. (Note: GM and Stellantis do not report monthly sales.) Another reason why prices may have stayed unchanged is that several automakers, including Hyundai, guaranteed pricing through the end of May, CarPro said. The firm also said shipments will soon be tariff-exposed, and further supply and pricing pressures are expected in the weeks ahead. The question is how long the automakers can hold the line on prices. 'Across OEMs, we continue to monitor post-tariff reactions, with GM saying that it will not raise prices across the board but continue to see consistent pricing (up 0.5%-1.0% for the year), and Ford extending employee pricing on most vehicles until July 4 (vs. June 2 previously) while hiking prices on Mexico-built vehicles,' Deutsche Bank's Edison Yu wrote in a note Tuesday morning. Kelley Blue Book (KBB), which tracks average transaction prices (ATP) at the dealership level, actually saw prices climb 2.5% month over month in April, more than double the average monthly move in April. A KBB spokesman told Yahoo Finance that timing and different data sources may have led to the deviations between KBB's numbers and the government's CPI reading. CPI data may be a bit older than KBB's, the spokesman said, meaning CPI data may be more of a trailing indicator than KBB's. With tariffs on foreign-made autos still on the table, prices are expected to rise, meaning April's lack of change in pricing may be a blip. As Deutsche Bank noted above, Ford is already raising prices on its Mexican-built Ford Maverick, Bronco Sport, and Mustang Mach-E EV. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
