Latest news with #TSLA
Yahoo
6 hours ago
- Automotive
- Yahoo
Trump Won't Take Away Tesla's Subsidies. Does That Make TSLA Stock a Safe Buy Here?
After weeks of escalating tension between two of America's most high-profile figures — Elon Musk and President Donald Trump — a surprising shift in tone has emerged. In a recent post, Trump denied claims that he intends to 'destroy' Musk's companies, including Tesla (TSLA) and SpaceX, insisting instead that he wants Musk to 'THRIVE like never before.' The statement appeared to be an olive branch, but does it really change the equation for Tesla? In this article, we'll unpack the implications of Trump's recent statements and explore whether TSLA stock is truly a safe buy today, or if investors should brace for further turbulence ahead. More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 2 Growth Stocks Wall Street Predicts Will Soar 74% to 159% Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. With that, let's dive in! About Tesla Stock Tesla (TSLA) is a prominent innovator dedicated to accelerating the global transition to sustainable energy. The Elon Musk-led powerhouse designs, develops, manufactures, leases, and sells high-performance fully electric vehicles, solar energy generation systems, and energy storage products. It also offers maintenance, installation, operation, charging, insurance, financial, and various other services related to its products. In addition, the company is increasingly focusing on products and services centered around AI, robotics, and automation. TSLA has a market cap of $1.02 trillion. Shares of the EV maker have fallen 21.7% on a year-to-date basis. Tesla faced renewed selling pressure following its Q2 earnings report, after CEO Elon Musk warned of tough times ahead for the company as incentives like the EV tax credit phase out in the U.S. Still, the recent U.S.-EU trade agreement and Tesla's $16.5 billion deal with Samsung to manufacture next-generation chips provided some relief, helping to protect the stock from further losses. Trump Says He Won't 'Destroy' Musk's Companies — But Does It Matter Anymore? Last Thursday, President Donald Trump dismissed allegations that he intends to undermine Elon Musk's companies or their work with the U.S. government. 'Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large-scale subsidies he receives from the U.S. Government. This is not so!' Trump said in a post to Truth Social. The president, who has repeatedly threatened to revoke Musk's government contracts and subsidies since their public feud last month, emphasized that he wants Musk to 'THRIVE like never before.' The post seemed to be an attempt to ease tensions in the feud. In June, Trump threatened to cut some of Musk's government contracts as tensions escalated between the two over the president's 'One Big Beautiful Bill' and their relationship unraveled. Still, in a post on X, Musk insisted that his companies do not receive any special subsidies or preferential contracts from the federal government, effectively rejecting what appeared to be a peace offering from Trump. 'The 'subsidies' he's talking about simply do not exist,' Musk wrote. Musk then alleged that Trump, whom he referred to only as 'DJT,' had 'already removed or put an expiry date on all sustainable energy support while leaving massive oil & gas subsidies untouched,' taking a swipe at the president's sweeping spending bill that eliminated the $7,500 federal EV tax credit. Besides phasing out tax credits for EV purchases, the law also dismantled federal fuel-economy standards that have been a significant source of revenue for Tesla over the years. According to FedScout, Tesla has generated $12.24 billion in revenue from the sale of 'automotive regulatory credits,' also known as environmental credits, since 2015. During the Q2 earnings call, Musk cautioned that Tesla could face 'a few rough quarters' as a result of tariff-related costs and the expiration of federal EV incentives at the end of September. In its most recent 10-Q filing, Tesla referenced Trump's 'One Big Beautiful Bill Act' using its initials, OBBBA, in the Risk Factors section. 'The loss of previously available tax credits and carbon offset mechanisms may further negatively impact our financial results,' according to the filing. In addition, the company said that 'provisions of the OBBBA could affect battery cell expenses and impact costs for our consumers, negatively impacting demand.' Musk also dismissed claims that his rocket company, SpaceX, was receiving preferential treatment, stating that 'SpaceX won the NASA contracts by doing a better job for less money.' Musk argued that moving SpaceX's contracts to 'other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!' Meanwhile, a recent report from the Wall Street Journal appeared to confirm Musk's claims regarding SpaceX. The report stated that the Trump administration had recently reviewed SpaceX's federal contracts to assess potential areas for cuts. However, the review found that most of the contracts were critical. Notably, SpaceX has received more than $22 billion through federal government contracts since 2008, according to FedScout. To sum up, Trump's recent remarks don't make TSLA stock a safe buy, as his tax bill has already dealt a blow to the company — regardless of what he now says. With that, let's shift our focus to the company's recent earnings report for a closer look. Tesla's Struggles Persist With More Challenges on the Horizon On July 24, TSLA stock dropped more than 8% after the company reported its steepest revenue decline in at least a decade, with CEO Elon Musk cautioning about challenging times ahead. Musk said that Tesla is entering a transition period that could last a year or longer, as it loses U.S. electric vehicle incentives and requires time to roll out its autonomous vehicles. 'We probably could have a few rough quarters,' he noted. Musk's remarks were his most direct yet regarding the impact of the tax bill signed by President Donald Trump this month on Tesla. I covered TSLA's Q2 results in depth in my previous article, so here I'll briefly highlight the headline numbers and focus more on the fallout from the tax bill. Tesla's total revenue stood at $22.5 billion, down 11.8% year-over-year and the sharpest decline since 2012. Its adjusted EPS slumped 23% year-over-year to $0.40, but was in line with expectations. The company's core automotive business continued to struggle amid intensifying competition and backlash from Musk's political activities. Revenue from the automotive segment declined 16% year-over-year to $16.7 billion due to lower vehicle deliveries, falling average selling prices, and lower revenue from regulatory credit sales. And this is where it gets most interesting. Revenue from regulatory compliance credits that Tesla sells to rival automakers fell to $439 million in Q2, down 26% from the first quarter and 51% year-over-year. This revenue stream is now at risk following the tax law signed by Trump this month, which removed penalties automakers previously faced for not meeting federal fuel-economy standards. Most importantly, revenue from regulatory credit sales flows directly to Tesla's bottom line. Trump's tax bill is poised to eliminate penalties for automakers that fail to meet the National Highway Traffic Safety Administration's Corporate Average Fuel Economy (CAFE) standards, which are a key driver of demand for these regulatory credits. The future of two other credit sources — those from the U.S. Environmental Protection Agency and California's zero-emission vehicle program — remains uncertain due to proposed rule changes and political and legal challenges. Earlier this month, William Blair analysts estimated that roughly 75% of Tesla's credit revenue is derived from CAFE standards. Just days after the new law was enacted, they cut their estimate for the company's 2025 credit revenue by nearly 40%, bringing it down to around $1.5 billion. The analysts project it will drop to $595 million next year and be completely wiped out in 2027. 'The elimination of the CAFE fines requires a reset in expectations,' the William Blair analysts said in a note. What Do Analysts Expect for TSLA Stock? Wall Street analysts remain divided on Tesla, as the stock currently holds a consensus rating of 'Hold.' Of the 41 analysts covering the stock, 12 rate it a 'Strong Buy,' two label it a 'Moderate Buy,' 17 suggest holding, and 10 have assigned a 'Strong Sell' rating. Notably, the stock currently trades at a premium to its average price target of $299.28. The company's valuation reflects a similar trend, with a forward non-GAAP price-earnings ratio of 190.14x, well above both the sector median and its own 5-year average. The premium stems from investors' confidence in Musk's promises surrounding artificial intelligence, robotics, and self-driving technology. Meanwhile, analysts tracking the company anticipate a 30.38% year-over-year decline in its adjusted EPS to $1.68 for fiscal 2025, with revenue expected to drop 5.19% year-over-year to $92.62 billion. The Bottom Line on TSLA Stock Putting it all together, as I noted earlier, TSLA doesn't appear to be a safe buy in light of Trump's recent remarks. Actions speak louder than words — and Trump's tax legislation has already significantly damaged Tesla's financial outlook. On top of that, the company's valuation looks expensive even for a high-growth company, but Tesla doesn't look like a growth story anymore, with both its revenue and earnings projected to decline this year. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Market Minute 7-28-25- Markets Cheer EU, China Deal Progress
The equity markets are starting the week off with a positive tone thanks to trade deal progress over the weekend. Gold and silver are a bit lower, while crude oil is higher. The dollar is popping, but Treasuries are taking on water. To get more articles and chart analysis from MoneyShow, subscribe to our .) Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA The US and European Union reached a trade deal in Scotland over the weekend, one that will result in EU exporters paying 15% tariffs (rather than up to 50%) on most products. Tariffs on many US exports to Europe will drop to zero. The EU is the US' biggest trading partner, with just over 20% – or about $303 billion – of total imports coming from the bloc in the first five months of 2025. Some European countries complained the deal was too generous to the US. But markets on both sides of the Atlantic rallied because worst-case outcomes were averted. Meanwhile, negotiators from the US and China are meeting in Stockholm this week. The gathering will likely result in another 90-day pause on new cross-border tariffs, one designed to give both sides more time to talk. The previous extension runs through Aug. 12. The iShares Europe ETF (IEV) and iShares China Large-Cap ETF (FXI) are handily outperforming the SPDR S&P 500 ETF (SPY) in 2025, as you can see in this chart. SPY, IEV, FXI (YTD % Change) Data by YCharts The Federal Reserve will meet this week to discuss interest rates, with a decision to be announced Wednesday afternoon. Despite heavy pressure from the White House, Chairman Jay Powell & Co. will almost certainly NOT cut rates this week. But Powell could hint that cuts are coming soon. The final three Fed meetings of 2025 conclude on Sept. 17, Oct. 29, and Dec. 10. See also: ORCL: A Cloud Computing Giant Seeing Turbocharged Growth from AI Finally, Tesla Inc. (TSLA) and Samsung Electronics Co. just inked a $16.5 billion, multi-year semiconductor production deal. Samsung will supply Tesla's next-generation AI6 chip from a new factory in Texas, a major step in Samsung's quest to catch up to industry leader Taiwan Semiconductor Manufacturing (TSM). Samsung shares jumped almost 7% on the news. More From TSLA & GOOGL: Which One is TRULY Focused on Cars CCI: A Wireless Tower Titan that Just Reported Stellar Results Market Minute 7/25/25: Market Bubble? Or Just Gains on Great Earnings? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Tesla Stock Outlook: Is Wall Street Bullish or Bearish?
Tesla, Inc. (TSLA) is a leading American electric vehicle (EV) and clean energy company headquartered in Austin, Texas. Valued at $940.6 billion by market cap, Tesla designs, manufactures, and sells electric cars, battery energy storage systems, solar products, and related software and services. Its popular EV lineup includes the Model S, Model 3, Model X, and Model Y, with plans to expand into trucks (Cybertruck) and autonomous driving technology. Shares of this EV titan have outperformed the broader market over the past year. TSLA has gained 48.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.6%. However, in 2025, TSLA stock is down 19.4%, compared to SPX's 8.6% climb on a YTD basis. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Zooming in further, TSLA has outpaced the Global X Autonomous & Electric Vehicles ETF (DRIV). The exchange-traded fund has increased 17.1% over the past year and 8.7% in 2025. On Jul. 26, Tesla announced a major $16.5 billion tech partnership with Samsung Electronics to produce its next-generation AI6 chip at Samsung's new Texas fab. The chip is critical to Tesla's Full Self-Driving (FSD), robotics, and data center operations. TSLA shares rose 3.5% in the next trading session. For the current fiscal year, ending in December, analysts expect TSLA's EPS to decline 40.2% to $1.22 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters, while missing the forecast on two other occasions. Among the 41 analysts covering TSLA stock, the consensus is a 'Hold.' That's based on 12 'Strong Buy' ratings, two 'Moderate Buys,' 17 'Holds,' and 10 'Strong Sells.' This configuration is less bullish than a month ago, with 14 analysts suggesting a 'Moderate Buy.' On Jul. 21, Cantor Fitzgerald analyst Andres Sheppard reiterated an 'Overweight' rating and $355 price target on Tesla, citing key near-term catalysts. While acknowledging short-term challenges, such as macroeconomic conditions, Elon Musk's controversial public image, tariffs, and the potential loss of the EV tax credit, the firm remains bullish in the long term. TSLA currently trades above its mean price target of $298.80, and its Street-high price target of $500 suggests an ambitious upside potential of 53.6% from the current market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 days ago
- Automotive
- CNBC
Tesla's valuation could 'far exceed' current levels, RBC Capital Markets says
Tesla has big shoes to fill in robotics and driving software and is making significant progress in those goals, according to RBC Capital Markets. The investment firm maintained its outperform rating on the electric vehicle stock while lifting its price target by $4 to $325, which analyst Tom Narayan said incorporates Tesla's 2026 valuation and global humanoid robot penetration estimates. Narayan's new price target suggests shares are fairly valued, as the stock last closed at $325.59 per share. Shares are down more than 19% year to date. "Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin robotaxi launch has been better than many feared and the company is looking to expand in more cities," Narayan said in a Monday note to clients, adding that "regulatory hurdles remain, however ... we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters." Narayan pointed to Tesla's $300 million tariff-related impact in the second quarter, stemming from headwinds in its cars and energy business. TSLA 1Y mountain Tesla stock performance over the past year. Looking ahead, Narayan is bullish on Tesla's robotaxi expansion, although he believes the company's goal to reach half of the U.S. population by year-end is a "stretch target." Tesla recently expanded its robotaxi operating region in Austin, Texas , and is testing the service in Nevada and the San Francisco Bay Area among other locations. He's also betting big on Tesla's humanoid robots efforts. "Management maintained its goal to reach 1M units per year in less than 5 years. The prototype of its Optimus 3 will be ready by the end of this year and SOP still start next year," Narayan said in the note. "Our model only assumes this business will be used for manufacturing jobs. The reality is should these be used for home/retail purposes, the potential upside could be far greater than any other Tesla business." Narayan remains watchful of Tesla's full-self driving V.12 updates, which he said has driven a 25% increase in adoption rates. The company's supervised FSD remains to be approved in the EU and China, he said.
Business Insider
3 days ago
- Automotive
- Business Insider
‘It's Only Just Begun,' Says Andres Sheppard About Tesla Stock
Tesla (NASDAQ:TSLA) stock is steering into the future – quite literally. On June 22, the company officially launched its much-anticipated robotaxi service in Austin. Tesla began using Model Y vehicles equipped with autonomous driving technology to transport select invite-only passengers around predefined neighborhoods at a playful flat fee of $4.20 per ride. For now, however, each vehicle still includes a safety monitor seated in the front passenger seat, providing an additional layer of supervision and reassurance during these autonomous trips. 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. It wasn't long before Tesla took its next leap forward: on June 27, the company completed its first fully autonomous vehicle delivery. Imagine a Model Y quietly departing Tesla's Gigafactory, cruising effortlessly through Austin's streets, and parking itself in the customer's driveway without a single human intervention – that's exactly what happened. Furthermore, the company announced plans last week to ramp up its robotaxi operation in Austin by adding more vehicles and expanding service coverage. As the system matures and local regulations allow, Tesla aims to phase out the in-car safety monitors altogether, ushering in a truly driverless passenger experience. Looking further ahead, Tesla is already sketching out the next generation of autonomous ride-sharing. In 2026, the automaker plans to roll out its futuristic Cybercab – a purpose-built, fully autonomous vehicle without a steering wheel or pedals. Cantor analyst Andres Sheppard sees Tesla's latest moves as another powerful signal of the company's strategic edge in the rapidly evolving autonomous vehicle landscape. According to Sheppard, Tesla's focus on expanding its robotaxi services marks a critical step toward solidifying its role as a frontrunner in the competitive ride-sharing market. 'We expect Robotaxi expansion into the Bay Area (in 3Q), followed by Arizona, Nevada and possibly Florida (in 4Q25/2026E), subject to regulatory approvals… Overall, we continue to see Tesla's Robotaxi segment as a software-as-a-service, high-margin model, and we expect TSLA to have the ability to rapidly scale following commercialization. We expect TSLA will capture a leading market share in these industries,' Sheppard opined. To this end, Sheppard rates TSLA shares an Overweight (i.e., Buy) along with a $355 price target. (To watch Sheppard's track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 14 Buys, 15 Holds and 8 Sells add up to a Hold (i.e. Neutral) consensus rating. In addition, the $310.65 average price target indicates ~5% downside from current levels. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
