Tesla (TSLA) Delays Optimus Robot Amid Production and Leadership Setbacks
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.
Optimus Faces Delays Amid Technical and Leadership Setbacks
During the company's second-quarter earnings call, CEO Elon Musk acknowledged the challenges and scaled back expectations. He now expects production of the updated Optimus 3 model to begin in early 2026. Musk still sees long-term potential, calling the goal of one million units per year within five years 'a reasonable aspiration.' He added that he would be 'shocked' if Tesla is not producing 100,000 units per month by 2030.
Production was paused in mid-June to address hardware issues. Joint motors have been overheating, and current batteries often fall short in terms of durability. The robot's hands, a critical piece for dexterity, lack the strength and reliability needed for repetitive tasks. Tesla is testing new materials and working with multiple suppliers to find a solution.
Leadership turnover has also slowed momentum. Milan Kovac, who ran the program, left in June. Ashok Elluswamy, previously head of Tesla's Full Self-Driving division, is now leading the effort. In related news, earlier in June, Tesla filed a lawsuit against one of its former engineers and his robotics startup, accusing them of stealing trade secrets related to the design of the Optimus hand.
Tesla is counting on new business lines as its core automotive segment faces pressure. The company reported a 12% decline in revenue and a 16% drop in vehicle sales for Q2 2025. U.S. EV tax incentives are fading, and competition from General Motors (GM), Hyundai (HYMLF), and others is growing. Tesla is betting on robotics and AI to drive future growth, but for now, Optimus remains a long-term play.
Is Tesla a Buy, Sell, or Hold?
On the Street, Tesla currently boasts a Hold consensus rating from Wall Street analysts based on 35 reviews. The average price target stands at $314.14, suggesting a potential downside of 0.61%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Buy, Sell or Hold Navitas Stock? Key Tips Ahead of Q2 Earnings
Navitas Semiconductor NVTS is set to release its second-quarter 2025 results on Aug. the second quarter of 2025, net revenues are expected to be between $18 and $20 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $14.5 million, suggesting a year-over-year decline of 29.1%. The consensus mark for loss is pegged at 5 cents per share for the second quarter of 2025, unchanged over the past 30 days. NVTS reported a loss of 7 cents per share in the year-ago quarter. Navitas Semiconductor Corporation Price and EPS Surprise Navitas Semiconductor Corporation price-eps-surprise | Navitas Semiconductor Corporation Quote Let's see how things have shaped up for this announcement. Key Factors to Note for NVTS Earnings Navitas Semiconductor is a well-known provider of power semiconductors driven by its GaN (gallium nitride) business, under GaNFast, GaNSafe and GaNSense brands. Investments by NVIDIA NVDA and Tesla in GaN technology, as well as expanding footprint across mobile, electric vehicle (EV), and energy sectors, bode well for Navitas' prospects. However, sluggishness in solar, EV and industrial end-markets is expected to have negatively impacted second-quarter 2025 results. Unfavorable product mix is expected to have hurt gross margin in the to-be-reported quarter. Uncertainty over tariffs and trade issues between the United States and China has been a headwind for Navitas. NVTS Shares Outperform Sector Navitas Semiconductor shares have jumped 97.8% year to date, outperforming the broader Zacks Computer and Technology sector's return of 11.4% and the Zacks Electronics Semiconductors industry's return of 16.7%. NVTS Stock's Performance Image Source: Zacks Investment Research Navitas Semiconductor stock is not so cheap, as the Value Score of F suggests a stretched valuation at this terms of the forward 12-month Price/Sales, NVTS is trading at 16.92X, higher than the broader sector's 6.71X. Price/Sales (F12M) Image Source: Zacks Investment Research Navitas Semiconductor stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend. NVTS Stock Trades Above 50-Day and 200-Day SMAs Image Source: Zacks Investment Research NVTS' Strong Portfolio Aids Growth Amid Stiff Competition Navitas Semiconductor is ramping up new 80 - 120V GaN devices in 2025 to target the 48V DC-DC converter market. In Solar & Energy Storage, the launch of NVTS' bidirectional GaN ICs – GaN BDS, in the first quarter of 2025, is enabling single-stage power conversion. This disrupts traditional two-stage architectures used in more than 70% of power electronics, reducing cost, size and power loss by 30% or more. The innovation reveals high-efficiency applications across solar microinverters, EV onboard chargers, energy storage and motor control systems, with customer ramp-ups expected in late 2025 and the EV domain, NVTS has secured more than 40 design wins across China, Europe, the United States and Korea. With a rapidly expanding $900 million EV pipeline, Navitas is poised to scale in high-voltage, high-efficiency onboard and roadside chargers beginning in expanding relationship with NVIDIA is noteworthy. In May, Navitas Semiconductor collaborated with NVIDIA to support the development of NVIDIA's new 800V high-voltage DC (HVDC) architecture. NVIDIA's 800V HVDC approach is designed for next-generation AI data centers, including systems like NVIDIA Rubin Ultra. NVIDIA 800V HVDC architecture will improve end-to-end power efficiency up to 5%, reduce maintenance costs by 70%, and lower cooling costs, all using NVTS' GaNFast and GeneSiC power Navitas Semiconductor faces significant competition from the likes of Wolfspeed WOLF and Power Integrations POWI. These rivals continue to invest aggressively in wide bandgap technologies, supported by stronger revenue bases and deeper customer relationships. Power Integrations' GaN portfolio includes InnoSwitch3, InnoMux-2 ICs, HiperPFS and Scale-2 Gate Drivers. Power Integrations is the only GaN supplier offering devices rated at 900V, 1250V and 1700V, giving it an advantage in grid-tolerant and high-voltage applications. Wolfspeed has been taking initiatives to expand manufacturing capacity. A state-of-the-art, automated 200-millimeter (mm) capable silicon carbide device fabrication facility in New York (the Mohawk Valley fab) is noteworthy. Wolfspeed enjoys a first-mover advantage in 200-mm wafer volume production, which is the silicon carbide industry's most advanced technology. Conclusion NVTS' muted revenue growth outlook in the near term, along with a stretched valuation, makes the stock risky for investors. Navitas Semiconductor currently has a Zacks Rank #4 (Sell), which implies that investors should avoid the stock ahead of second-quarter 2025 results. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Wolfspeed (WOLF) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
CNN
an hour ago
- CNN
Tesla ordered by Florida jury to pay $329 million in Autopilot crash
FacebookTweetLink A Florida jury on Friday found Tesla liable in the 2019 fatal crash of an Autopilot-equipped Model S, and ordered Elon Musk's automaker to pay $329 million to the family of a deceased woman and an injured survivor. Jurors in Miami federal court ordered Tesla to pay $129 million in compensatory damages and $200 million in punitive damages to the estate of Naibel Benavides Leon and to her former boyfriend Dillon Angulo. Lawyers for the plaintiffs said the trial was the first involving the wrongful death of a third party resulting from Autopilot. The plaintiffs had sought $345 million. Tesla has faced many similar lawsuits over its vehicles' self-driving capabilities, but they have been resolved or dismissed without getting to trial. A judge rejected Tesla's efforts to dismiss the case earlier in the summer, and experts said this may encourage other litigants against the EV maker. 'I think it's a big deal,' said Alex Lemann, a professor at Marquette University Law School, who said this may make future settlements more expensive for Tesla. 'This is the first time that Tesla has been hit with a judgment in one of the many, many fatalities that have happened as a result of its auto-pilot technology.' Friday's verdict could impede efforts by Musk, the world's richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles as well as robotaxis it plans to start producing next year. Shares fell 1.8% on Friday. Tesla plans to appeal, according to published reports. The Austin, Texas-based company and its lawyers did not immediately respond to several requests for comment. The trial concerned an April 25, 2019, incident where George McGee drove his 2019 Model S at about 62 mph through an intersection into the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder. McGee had reached down to pick up a cellphone he dropped on his car's floorboard and allegedly received no alerts as he ran a stop sign and stop light before hitting the victims' SUV. 'We have a driver who was acting less than perfectly, and yet the jury still found Tesla contributed to the crash,' said Philip Koopman, a Carnegie Mellon University engineering professor and expert in autonomous technology. 'The only way the jury could have possibly ruled against Tesla was by finding a defect with the Autopilot software. That's a big deal.' Benavides Leon was allegedly thrown 75 feet to her death, while Angulo suffered serious injuries. 'Tesla designed Autopilot only for controlled-access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans,' Brett Schreiber, a lawyer for the plaintiffs, said in a statement. 'Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries,' he added. Last month, Tesla posted its biggest quarterly sales decline in more than a decade, and profit fell short of Wall Street forecasts.
Business Insider
2 hours ago
- Business Insider
Tesla Stock (TSLA) Faces New Trauma as European Sales Keep Sliding
Shares in EV maker Tesla (TSLA) reversed today as it suffered another European sales slowdown. 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. According to new official industry data, sales of the company's vehicles declined in France and Denmark for the seventh consecutive month. Nordic Nightmare Tesla, led by chief executive Elon Musk, registered 1,307 new cars in France last month, representing a 27% drop compared to July 2024. In Denmark, the decline was even steeper, with sales falling 52% to 336 vehicles. Model Y registrations specifically decreased by 49% in Denmark during July. Tesla's struggles extended to Sweden as well, where new car registrations plummeted 85.8% year-on-year to just 163 vehicles in July, based on data released today by Mobility Sweden. The figures were down 83.3% from June's total of 976 vehicles. In July, the Elon Musk-led company registered 117 Model Y units, 44 Model 3s, and one unit each of the Model S and Model X. This is despite Tesla currently offering a 40,000 SEK trade-in bonus for customers purchasing a Model Y or Model 3 from July 18 to August 15, and taking delivery by August 30. As can be seen below, the U.S. and China dominate Tesla sales, but Europe remains an important market. Tesla Ecosystem The news today builds on figures last week from the European Automobile Manufacturers' Association (ACEA), which revealed that Tesla sold 70,655 vehicles in the European Union in the first half of 2025. That was down 43.7% year over year. It continues a challenging year for Tesla whose sales worldwide have been hit by increased competition from rivals such as China's BYD (BYDDY), concerns over its design appeal, threats to EV subsidies in the U.S. and a hit to its brand reputation by Musk's on and very much off involvement with President Trump's administration. Not everyone is a Tesla doubter, however, with some analysts pointing to the overall strength of the Tesla ecosystem as a reason for optimism in the stock. Indeed, some see it as heading towards a staggering $10 trillion market value based on its innovations in human-like robots, self-driving and energy storage. Is TSLA a Good Stock to Buy Now? On TipRanks, TSLA has a Hold consensus based on 14 Buy, 15 Hold and 8 Sell ratings. Its highest price target is $500. TSLA stock's consensus price target is $310.84, implying a 0.83% upside.
