Latest news with #AustinRobotaxi
Business Insider
4 days ago
- Automotive
- Business Insider
Will Tesla Stock Plunge Nearly 50%? Here's What Guggenheim Expects
Tesla (NASDAQ:TSLA) bulls are pinning hopes on the company's Robotaxi service to reignite growth at the EV maker, and on that front, CEO Elon Musk had some good news for investors recently. 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. On the weekend, Musk announced on X that Tesla's Austin Robotaxi service will open to the public next month. That, says Guggenheim analyst Ronald Jewsikow, is 'quicker than we were expecting.' Although the exact structure of the public Robotaxi network remains uncertain – likely requiring a significant increase in vehicle numbers – it represents 'another show of confidence' in the service. So far, Tesla has reported only one safety-related incident in Austin, classified as a 'safety concern' rather than an accident, which Jewsikow believes occurred on the network's first day of operation. The public launch of the Austin Robotaxi experience represents a 'key step' in engaging a broader – and potentially more discerning – group of consumers. That said, Jewsikow thinks some skepticism among the fanbase might be warranted, although it's unlikely to materialize. 'While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now,' the analyst said on the matter. And as if to reinforce confidence in Tesla's autonomous ambitions, Musk also revealed that the next-generation FSD model – version 14, boasting 10X more parameters – is expected to debut in roughly six weeks. Initially, it will be rolled out to the early access FSD community, but its progress within Tesla's employee fleet and the Robotaxi network is encouraging. For consumers, the update should reduce how often the FSD system 'nags,' and Musk hinted at numerous additional improvements beyond the parameter boost, though he hasn't yet shared specifics. For the uninitiated, '10X parameters' refers to the number of variables the FSD model uses to learn from data. These variables adjust to make predictions more accurate. In Tesla's neural network, parameters act as influences on the neurons. For the Robotaxi system and FSD overall, a higher number of parameters allows the model to learn more complex patterns, behaviors, and tasks, and improves training. 'Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today,' Jewsikow said, 'the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.' Still, these updates haven't swayed Jewsikow's overall bearish stance. His rating on TSLA shares remains a Sell, and his $175 price target implies a one-year drop of nearly 50%. (To watch Jewsikow's track record, click here) The Street's average price target is a more forgiving $307.23, although that figure suggests shares are overvalued by 9%. Based on a mix of 15 Holds, 14 Buys, and 8 Sells, TSLA stock claims a Hold (i.e., Neutral) consensus rating. (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.
Yahoo
23-06-2025
- Business
- Yahoo
Novo Nordisk Just Axed Its Deal with Hims & Hers. Should You Buy the Dip in HIMS Stock?
Hims & Hers (HIMS) shares tanked more than 30% on Monday after pharmaceutical behemoth Novo Nordisk (NVO) terminated its distribution agreement with the telehealth company. Novo Nordisk agreed to a high-profile partnership with HIMS to distribute Wegovy, its blockbuster weight-loss treatment. The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! But the Danish giant axed that deal today, citing concerns that Hims & Hers has been selling unapproved compounded formulations of that drug on its online platform. Including today's plunge, Hims & Hers stock is down more than 35% versus its year-to-date high. Novo Nordisk's announcement this morning is disconcerting for Hims & Hers investors because the deal was broadly seen as the latter's gateway into the booming weight-loss market. Offering access to Wegovy via a $599-per-month bundled plan could have resulted in a meaningful boost to its revenue, especially as GLP-1 drugs reshape obesity care. However, not only did the telehealth firm lose that growth catalyst today, it now faces reputational damage and regulatory scrutiny as well over its compounded drug practices. Together, this could make it incrementally more difficult for HIMS shares to recover in the second half of 2025. Investors should practice caution in buying the dip in Hims & Hers stock on Monday also because – even without the loss of Wegovy – the company's management guided for weaker-than-expected Q2 sales. In May, the telehealth firm said its revenue will fall between $530 million and $550 million in the second quarter – short of the nearly $565 million that experts had forecast. And now that HIMS has lost Wegovy deal as well, its financials will likely take a more pronounced hit moving forward. That's part of the reason why BofA currently rates Hims & Hers shares at 'Sell.' Its analysts' $28 price target on the San Francisco-headquartered firm warns of another 35% down side from here. The consensus rating on Hims & Hers stock currently sits at 'Hold' only. While analysts have a mean target on HIMS set at about $48 at writing, suggesting potential upside of more than 10% from here – investors should note that they could downwardly revise their estimates following NVO news in the coming weeks. On the date of publication, Wajeeh Khan 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
11-06-2025
- Automotive
- Yahoo
Tesla (TSLA) Faces Delivery Slump as Wells Fargo Sticks With $120 Price Target
Tesla, Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Wells Fargo reiterated an 'Underweight' rating on the stock with a $120 price target. The firm is sticking with its underweight rating, stating that the company's Q2 deliveries are 'on track for another poor quarter.' 'Most of TSLA May delivery results are now out. Once again, global deliveries are trending meaningfully weaker, with May trending 23% lower y/y and Q2 QTD trending 21% lower y/y. All three key regions are double-digit % lower, with EU the worst.' North America, Europe, and China— Tesla's key regions— have been experiencing double-digit percentage declines, the firm noted, further revealing that the 'fundamentals of the core auto business continue to weaken.' It further said that 'order' pricing on the website appears stable over the LTM,' but 'aggressive financing promotions continue to act as price cuts.' This, coupled with lower leverage, is a risk to Q2 margins. Attention is now being diverted to Austin Robotaxi deployment on June 12, which the firm doubts 'the likely limited debut will be enough to overshadow the poor fundamentals.' The firm also pointed toward China, Tesla's second-largest market, which is 'trending 22% lower QTD.' The firm asserted how the 'competition in China is beginning to take its toll on TSLA's business,' as local OEMs like BYD (SZ:002594) and Chery 'continue to undercut TSLA on pricing.' While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
