Latest news with #ColinLangan
Yahoo
7 hours ago
- Automotive
- Yahoo
Tesla Stock plummets as Austin Factory Shuts Down Cybertruck Line
June 18 - Tesla (NASDAQ:TSLA) shares fell nearly 4% on Tuesday after reports surfaced of a temporary production halt at its Austin, Texas facility, dampening investor sentiment ahead of the company's highly anticipated Robotaxi launch. The stock has declined about 22% so far this year. According to Business Insider, Tesla plans to suspend manufacturing of its Cybertruck and Model Y models for a week starting June 30. The company reportedly told employees the downtime would allow for maintenance and upgrades on the production lines. No details were provided on which areas may see output improvements. This marks at least the third production pause for Tesla in 2025. The EV maker has been under pressure following disappointing first-quarter results and increasing competition in the global electric vehicle market. Investor concerns have also been fueled by CEO Elon Musk's political ties and recent public disputes. Meanwhile, Tesla is preparing to roll out a pilot version of its Robotaxi service in Austin on June 22. The initiative will use Model Y vehicles equipped with the company's latest Full Self-Driving software. Local groups have voiced opposition to the program, citing safety and transparency concerns. Separately, Wells Fargo issued a downbeat outlook on Tesla's second-quarter performance. Analyst Colin Langan warned that deliveries would need to jump over 50% in June to meet Wall Street targets. He also forecast a $1.9 billion free cash flow deficit for the year and slashed his price target to $120, reflecting a possible 62% downside. Based on the one year price targets offered by 43 analysts, the average target price for Tesla Inc is $289.30 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -8.55% from the current price of $316.35. Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $269.36, suggesting a downside of -14.85% from the current price of $316.35. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
7 hours ago
- Automotive
- Yahoo
Tesla Stock plummets as Austin Factory Shuts Down Cybertruck Line
June 18 - Tesla (NASDAQ:TSLA) shares fell nearly 4% on Tuesday after reports surfaced of a temporary production halt at its Austin, Texas facility, dampening investor sentiment ahead of the company's highly anticipated Robotaxi launch. The stock has declined about 22% so far this year. According to Business Insider, Tesla plans to suspend manufacturing of its Cybertruck and Model Y models for a week starting June 30. The company reportedly told employees the downtime would allow for maintenance and upgrades on the production lines. No details were provided on which areas may see output improvements. This marks at least the third production pause for Tesla in 2025. The EV maker has been under pressure following disappointing first-quarter results and increasing competition in the global electric vehicle market. Investor concerns have also been fueled by CEO Elon Musk's political ties and recent public disputes. Meanwhile, Tesla is preparing to roll out a pilot version of its Robotaxi service in Austin on June 22. The initiative will use Model Y vehicles equipped with the company's latest Full Self-Driving software. Local groups have voiced opposition to the program, citing safety and transparency concerns. Separately, Wells Fargo issued a downbeat outlook on Tesla's second-quarter performance. Analyst Colin Langan warned that deliveries would need to jump over 50% in June to meet Wall Street targets. He also forecast a $1.9 billion free cash flow deficit for the year and slashed his price target to $120, reflecting a possible 62% downside. Based on the one year price targets offered by 43 analysts, the average target price for Tesla Inc is $289.30 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -8.55% from the current price of $316.35. Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $269.36, suggesting a downside of -14.85% from the current price of $316.35. This article first appeared on GuruFocus. 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
8 hours ago
- Automotive
- Yahoo
Tesla stock drops as Wells Fargo warns of weak Q2 deliveries, free cash flow under threat
Tesla stock (TSLA) is falling Tuesday as one of the Street's biggest bears is raising alarms over Tesla's core auto business and resulting free cash flow. Wells Fargo's Colin Langan notes that Tesla's fundamentals are coming in worse than expected. The bank is expecting second quarter deliveries to be down 21% compared to a year ago, with the firm's 343,000 estimate approximately 17% below street consensus. 'New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H [second half of the year] volumes,' Langan wrote in a note to clients. 'Order px [pricing] is ~stable, though financing promos & inventory discounts continue. We expect lower margin q/q due to px.' Tesla shares were down 4% in afternoon trade, underperforming the broader market. Even more pressing in Langan's analysis was Tesla's free cash flow metrics, which might go negative in 2025 due to a variety of factors. The Senate's recent vote ending California's ability to regulate air pollution was 'game over' for the state's regulatory board, known as CARB, Langan said. The vote means that automakers will no longer need to buy zero-emission vehicle (ZEV) regulatory credits from companies like Tesla to offset CO₂ emissions, which Wells Fargo said could imply a 16% cut to full-year EBIT (earnings before interest and taxes). The state of California has sued the federal government, looking to reinstate the ruling. Due to the combination of lower deliveries, lower EV credits, pricing, tariffs, and steady capex spending, 'We now forecast FCF [free cash flow] burn of $1.9 billion, the first FCF FY since 2018," the note said. Langan is also concerned about Tesla's robotaxi testing in Austin. 'The FSD [full self-driving] testing in Austin seems to be w/in a limited range, at low speed & heavily supervised. We see a risk of ramping up too quickly as an accident would be a major setback,' Langan said. Analysts like Wedbush's Dan Ives and Morgan Stanley's Adam Jonas believe Tesla's FSD and robotaxi service are key to unlocking trillions in value, which is notable as Langan himself estimates Tesla currently trades at 172 times 2025 EPS forecasts, a rich valuation. Langan reiterated his Underweight rating and $120 price target. Langan and Wells have been underweight the stock since March of last year and missed the steep run-up in Tesla shares following President Trump's reelection. Tesla stock is down nearly 22% this year, but up 68% in the past 12 months. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. 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
8 hours ago
- Business
- Yahoo
Trending tickers: Tesla, CoreWeave, CrowdStrike, Airbus and AO World
Shares in Tesla fell nearly 4% on Tuesday, after Wells Fargo warned of weak second quarter deliveries and concerns about a threat to its free cash flow. Wells Fargo is expecting Tesla's Q2 deliveries to be down 21% versus a year ago, with the bank's 343,000 estimate around 17% below the consensus. In a note to clients, Wells Fargo's Colin Langan wrote: "New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H [second half of the year] volumes." Read more: FTSE 100 LIVE: Stocks rise as UK inflation slows ahead of Bank of England decision "Order px [pricing] is stable, though financing promos & inventory discounts continue. We expect lower margin q/q due to px." Langan's analysis showed that Tesla's free cash flow was at risk of going into the red in 2025 due to different factors, including lower deliveries, as well as pricing and tariffs. 'We now forecast FCF [free cash flow] burn of $1.9bn (£1.4bn), the first FCF FY since 2018," the note said. Tesla shares were back up nearly 1% in pre-market trading on Wednesday morning, though the stock is still down nearly 10% over the past month. Shares in Nvidia (NVDA)-backed artificial intelligence cloud computing company CoreWeave (CRWV) surged 8.5% on Tuesday and were up another 2% in pre-market trading on Wednesday. The stock's rise came after Bank of America analyst Brad Sills on Monday downgraded CoreWeave but set his price target on shares to a new Wall Street high. Read more: Oil prices ease but remain at four-month high amid Iran-Israel conflict Sills lowered his rating on CoreWeave to "neutral" from "buy", citing a high valuation and pointed out that it was trading on 27 times its projected 2027 earnings but highlighted its significant debt. However, Sills still lifted his price outlook on the stock to $185 from $76, which is the highest among Wall Street analysts tracked by Bloomberg. "[W]e see solid sustained demand in CoreWeave's AI infrastructure market," Sills wrote. Cybersecurity firm CrowdStrike (CRWD) hit at a fresh all-time high on Tuesday, with a closing share price of $492.03, with the stock hovering just above the flatline in pre-market trading on Wednesday. CrowdStrike announced on Monday that it had joined forces with Amazon (AMZN) Web Services (AWS) to provide a program for security incident response. Read more: Stocks that are trending today The company said that its new program offered "AI-powered incident response to help organisations respond to incidents faster, reduce risk, and strengthen their cloud security posture, while providing joint customers significant cost savings and a seamlessly integrated security workflow." Shares rebounded from a fall earlier in June on the back of CrowdStrike's first quarter results. The company posted adjusted earnings per share of $0.73 for the quarter, compared to a Bloomberg consensus estimate of $0.66, while revenue of $1.1bn was in line with expectations. On the Paris bourse, shares in Airbus ( were up 2.6% on Wednesday morning, after the aeronautics and space company reaffirmed its 2025 guidance. Airbus said in a statement on Wednesday, it extended the upper range of its dividend payout ratio to 30% to 50% from the current ratio of 30% to 40%. Stocks: Create your watchlist and portfolio The company also said it would keep its 2025 guidance unchanged. In its first quarter results, published at the end of April, Airbus said it was targeting adjusted earnings before interest and tax of around €7bn (£5.98bn). Shares rose after the release of its first quarter results, though the stock is up just 6.5% year-to-date. On the London market, shares in AO World (AO.L) were down nearly 3%, after the online electronics retailer flagged higher inflation costs. AO said that the largest increase in operational costs had been from those relating to employment and warned that this would only rise further in the 2026 fiscal year because of the changes to the minimum wage and employer national insurance contributions, which were announced in the autumn budget. "We anticipate that this is likely to continue for the next few years, and so we will increasingly look to mitigate these costs through automation, outsourcing and offshoring," AO said. However, in its full-year results, released on Wednesday, AO said revenue rose 9% to £1.14bn ($1.53bn), while adjusted profit before tax came was up 27% to £44m. Read more: UK inflation slows to 3.4% in May as transport costs ease Russ Mould, investment director at AJ Bell, said: "AO has rediscovered its spark, hoovering up a significant number of new customers and growing profits fast. More than 650,000 people bought from the electricals retailer for the first time over the past year, while repeat customers accounted for over 60% of orders. That suggests AO is doing something right with both marketing and service. "At face value, everything looks good until you dig into the numbers. The mobile arm continues to be problematic and that's acting as an anchor on the business." Mould added: "Costs are another headwind for AO and they're only going to get worse. Furthermore, potential legislative changes could create more problems if retailers are forced to take back a customer's old electrical product for free when they deliver a new one." Read more: Why the UK's AIM is struggling 30 years on What you need to know about UK's private stock market Pisces This under-claimed benefit could help boost your pension
Yahoo
a day ago
- Automotive
- Yahoo
Tesla stock drops as Wells Fargo warns of weak Q2 deliveries, free cash flow under threat
Tesla stock (TSLA) is falling Tuesday as one of the Street's biggest bears is raising alarms over Tesla's core auto business and resulting free cash flow. Wells Fargo's Colin Langan notes that Tesla's fundamentals are coming in worse than expected. The bank is expecting second quarter deliveries to be down 21% compared to a year ago, with the firm's 343,000 estimate approximately 17% below street consensus. 'New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H [second half of the year] volumes,' Langan wrote in a note to clients. 'Order px [pricing] is ~stable, though financing promos & inventory discounts continue. We expect lower margin q/q due to px.' Tesla shares were down 4% in afternoon trade, underperforming the broader market. Even more pressing in Langan's analysis was Tesla's free cash flow metrics, which might go negative in 2025 due to a variety of factors. The Senate's recent vote ending California's ability to regulate air pollution was 'game over' for the state's regulatory board, known as CARB, Langan said. The vote means that automakers will no longer need to buy zero-emission vehicle (ZEV) regulatory credits from companies like Tesla to offset CO₂ emissions, which Wells Fargo said could imply a 16% cut to full-year EBIT (earnings before interest and taxes). The state of California has sued the federal government, looking to reinstate the ruling. Due to the combination of lower deliveries, lower EV credits, pricing, tariffs, and steady capex spending, 'We now forecast FCF [free cash flow] burn of $1.9 billion, the first FCF FY since 2018," the note said. Langan is also concerned about Tesla's robotaxi testing in Austin. 'The FSD [full self-driving] testing in Austin seems to be w/in a limited range, at low speed & heavily supervised. We see a risk of ramping up too quickly as an accident would be a major setback,' Langan said. Analysts like Wedbush's Dan Ives and Morgan Stanley's Adam Jonas believe Tesla's FSD and robotaxi service are key to unlocking trillions in value, which is notable as Langan himself estimates Tesla currently trades at 172 times 2025 EPS forecasts, a rich valuation. Langan reiterated his Underweight rating and $120 price target. Langan and Wells have been underweight the stock since March of last year and missed the steep run-up in Tesla shares following President Trump's reelection. Tesla stock is down nearly 22% this year, but up 68% in the past 12 months. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
