Tesla Stock Poised to Maintain ‘Upward Momentum,' Says Top Analyst
Alexander Potter believes that Tesla (TSLA) stock 'will likely sustain its upward momentum over the coming weeks' in his latest research note. The five-star analyst maintained his 'Buy' rating and $400 price target, which implies 22.5% upside potential from current levels. Potter ranks #444 out of the 9,636 analysts ranked on TipRanks. He boasts an average return per rating of 18.6% and a success rate of 48%.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Tesla stock has lost 19.2% year-to-date due to multiple issues. The electric vehicle (EV) maker has been facing some of its most ruthless trading weeks, marked by diminishing global auto deliveries, backlash against CEO Elon Musk 's political choices, and the most recent public showdown between Musk and President Donald Trump.
Robotaxi Event Could Be a Make-or-Break for TSLA
Potter highlighted that the firm's 'key component' of Tesla's robotaxi launch has started to play out. Tesla's autonomous robotaxis have been seen on the streets of Austin, Texas, and Musk has confirmed the deployment of the company's driverless taxis in the city. Having said that, the analyst warns that any high-profile robotaxi accident could likely trigger a 'violent downside' move in the stock price.
A majority of analysts have assigned a premium valuation to Tesla's future price targets due to the highly anticipated robotaxi service. Both investors and analysts are excited about Tesla's foray into the full self-driving (FSD) technology. On June 10, Musk posted a video on X that showed Tesla's driverless taxis running on Austin's streets. At the same time, Musk revealed that the commercial launch date for the robotaxis would be June 22. Meanwhile, he also mentioned that Tesla is targeting to deliver its first-ever FSD vehicle to a customer's home by June 28. This vehicle, he said, will drive itself from the end of the factory line directly to a customer's home.
Expectations are running high for Tesla's autonomous vehicle initiatives, while the company and its CEO remain highly cautious. 'We are being super paranoid about safety, so the date could shift,' Musk wrote on X on Tuesday. Following its success in Austin, Tesla aims to roll out the robotaxi service to other cities.
Is it a Good Idea to Buy Tesla Stock?
Analysts remain cautious about Tesla's long-term stock trajectory owing to various challenges. However, the rift between Musk and Trump seems to have eased, with the former backtracking on his rather critical comments about the President. Meanwhile, the President has also confirmed that he would not be canceling SpaceX's contracts, nor will he sell the Tesla Model S he recently bought, nor stop using Starlink's satellite service at the White House. For now, all eyes are on Tesla's robotaxi event scheduled for next week.
On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $285.97 implies 12.4% downside potential from current levels.
See more TSLA analyst ratings
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 hours ago
- Globe and Mail
Is General Mills Stock Underperforming the Dow?
Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global manufacturer and marketer of branded consumer foods sold through retail stores. With a market cap of $30.2 billion, the company operates through North America Retail, International, Pet, and North America Foodservice segments. Companies worth $10 billion or more are typically referred to as "large-cap stocks." GIS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the packaged foods industry. The company benefits from its vast offerings of ready-to-eat cereals, convenient meals, snacks, and more. The company touched its 52-week high of $75.90 on Sept. 10 last year and has fallen 28.2% from that peak. In the past three months, GIS stock has declined 16.5%, underperforming the Dow Jones Industrial Average's ($DOWI) 2.3% uptick during the same time frame. The stock's performance looks grim over the longer term as well. GIS stock has fallen 18.5% over the past 52 weeks and 14.5% on a YTD basis, underperforming Dow's 10.3% gains over the past year and a marginal rise in 2025. To confirm its recent downturn, GIS has been trading below its 200-day moving average since early November 2024 and below its 50-day moving average since early October 2024, with some fluctuations. On Mar. 19, GIS shares plunged 2.1% following the release of its mixed Q3 results. The company's net sales decreased 5% year-over-year to $4.8 billion, caused by higher-than-expected retailer inventory reductions and a slowdown in the snacking segment, and missed the Street's estimates. Its adjusted operating profit also declined 13% from the previous year's quarter to $801 million, caused by a 140 basis point drop in its adjusted operating margin to 16.5%. Moreover, GIS' adjusted EPS declined 15% year-over-year to $1.00 but successfully surpassed the consensus estimates by 5.3%. Its peer, The Kraft Heinz Company (KHC), has declined 13.4% in 2025 and 20.8% over the past year, lagging behind the stock. Among the 20 analysts covering the GIS stock, the consensus rating is a ' Hold.' Its mean price target of $60.95 suggests a robust 11.8% upside potential from current price levels.
Globe and Mail
2 hours ago
- Globe and Mail
Previewing Q2 Earnings Expectations
The expectation is for Q2 earnings to increase by +5.1% from the same period last year on +3.8% higher revenues. This will be a material deceleration from the +11.9% earnings growth in Q1 on +3.6% revenue growth. In the unlikely event that actual Q2 earnings growth for the S&P 500 index turns out to be +5.1%, as currently expected, this will be the lowest earnings growth pace for the index 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. 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 estimates have declined for 14 of the 16 Zacks sectors (Aerospace and Utilities are the only sectors whose estimates have increased), with the largest 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 of tariff uncertainty after the more punitive version of the tariff regime was delayed. Analysts started revising their estimates lower in the immediate aftermath of the early April tariff announcements, but appear to have since concluded that those punitive tariff levels are unlikely to get levied, helping 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 $254.04 for 2025 and $287 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. Key Earnings Reports This week The Q2 earnings season will really get going when the big banks come out with their June-quarter results in about a month. But we will have officially counted almost two dozen quarterly reports from S&P 500 members by then. All of those reports will be from companies with fiscal quarters ending in May, which we and other research organizations count as part of the June-quarter tally. We have seen such fiscal May-quarter results from four S&P 500 members, including last Wednesday's strong release from Oracle ORCL. We have another six S&P 500 members scheduled to report results this week, including Accenture ACN, Lennar LEN, and others. Oracle shares were up significantly following the beat-and-raise quarterly release, which came after two consecutive quarterly reports that market participants had found disappointing. Oracle's cloud growth appears to have finally arrived, with fiscal 2026 cloud revenues expected to grow by +40%, up from the fiscal 2025 growth rate of +24% (Oracle's fiscal year ends in May). As noted earlier, the stock has spiked on the earnings release and is now up +29.3% this year, handily outperforming the S&P 500 index (up +2.1%) and the Zacks Tech sector (up +2.5%). Shares of IT consulting firm Accenture have been under pressure lately, reflecting a challenging operating environment for its end-markets. The stock is down -11.4% this year, which compares to a +2.1% gain for the S&P 500 index and a +2.5% gain for the Zacks Tech sector. The issues in the Accenture story, in a generalized qualitative sense, pertain to the negative effects on corporate IT budgets of the ongoing tariff uncertainty and the deflationary effects of AI-driven operating efficiencies. One could argue that Accenture's scale lends its results considerable stability, particularly in comparison to other peers like India-based Infosys, TCS, and Wipro. But these macro headwinds nevertheless limit the stock's near-term upside potential. The company is scheduled to report results on June 20 th, with estimates essentially unchanged over the last two months. Lennar, the homebuilder, is scheduled to report results after the market's close on Monday, June 16 th. The homebuilder is expected to bring in $1.97 per share in earnings on $8.24 billion in revenues, representing year-over-year changes of -41.7% and -5.97%, respectively. This is a challenging environment for Lennar and other homebuilders, with demand hindered by affordability concerns and elevated mortgage rates. The stock was down after each of the last five quarterly releases and has lost roughly a fifth of its value this year (down -20.3%), which compares to the Zacks Construction sector's -1.9% decline and the S&P 500 index's +2.2% gain. Q2 Earnings Season Scorecard As noted earlier, we have already seen fiscal May-quarter results from four S&P 500 members, which we include in our Q2 tally. Total earnings for these four index members that have reported results are up +4.7% from the same period last year on +8.6% revenue gains, with 75% of the companies beating EPS estimates and all 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. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Accenture PLC (ACN): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report This article originally published on Zacks Investment Research (
CTV News
2 hours ago
- CTV News
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
WASHINGTON — U.S. President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But U.S. Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately US$11 billion in new investments will be made by 2028 and includes giving the U.S. government a 'golden share' — essentially veto power to ensure the country's national security interests are protected. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,' the two companies said. 'This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work and what investments would be made. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51 per cent ownership by Americans.' The Japan-based steelmaker had been offering nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in a merger that had been delayed on national security concerns starting during Joe Biden's presidency. Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office. 'We have a golden share, which I control,' said Trump, although it was unclear what he meant by suggesting that the federal government would determine what U.S. Steel does as a company. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' Still, Nippon Steel has never said it was backing off its bid to buy and control U.S. Steel as a wholly owned subsidiary. The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. Associated Press writer Marc Levy in Harrisburg, Pa., contributed to this report Josh Boak, The Associated Press
