Latest news with #ColinLangan
Business Insider
28-07-2025
- Automotive
- Business Insider
AutoNation (AN) Gets a Hold from Wells Fargo
In a report released on July 25, Colin Langan from Wells Fargo maintained a Hold rating on AutoNation, with a price target of $221.00. The company's shares closed last Friday at $203.25. 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. Langan covers the Consumer Cyclical sector, focusing on stocks such as Tesla, BorgWarner, and Autoliv. According to TipRanks, Langan has an average return of -5.8% and a 49.13% success rate on recommended stocks. In addition to Wells Fargo, AutoNation also received a Hold from J.P. Morgan's Rajat Gupta CFA in a report issued on July 17. However, on July 25, Bank of America Securities maintained a Buy rating on AutoNation (NYSE: AN). AN market cap is currently $7.66B and has a P/E ratio of 12.73. Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AN in relation to earlier this year. Most recently, in May 2025, C Coleman Edmunds, the EVP, Gen Counsel & Corp Sec of AN sold 12,324.00 shares for a total of $2,347,105.80.
Yahoo
30-06-2025
- Automotive
- Yahoo
Tesla Q2 deliveries expected to disappoint as Musk focuses on AI, robotaxi efforts
Tesla (TSLA) is expected to report another tough quarter when it comes to electric vehicle deliveries. Investors are hoping the bigger story remains its burgeoning robotaxi tests. For the second quarter, Tesla is expected to report global deliveries of 395,328, per Bloomberg consensus estimates, down 11% compared to a year ago but significantly higher than the 336,700 delivered in Q1. Production across its global plants is expected to come in at 443,321, up compared to last year's 410,800 produced. Sliding deliveries in the second quarter come as the company ramps up sales of its refreshed Model Y SUV, the company's top seller, which was expected to boost sales. Disappointing Q2 sales for Tesla are not exactly a surprise for investors and analysts following the company. Tesla EV registrations (a proxy for sales) in Europe fell 27.9% in May compared to a year ago, per the European Automobile Manufacturers Association (ACEA). Meanwhile, overall EV registrations in the region, which includes the UK and the European Free Trade Association, rose 25% in May, with overall registrations down 0.6%. May's total marks the fifth straight month of declining Tesla sales in the European region. Tesla sales year to date in Europe through May are down 37.1% to 75,196 units. The situation isn't much better in the US. Tesla EV registrations for April dropped 16% to 39,913 registrations, according to data published by S&P Global Mobility (via Automotive News). Meanwhile, General Motors' (GM) Chevrolet saw a 215% jump in EV registrations to finish in the second spot, with Ford (F) slipping to third place as sales fell 33%. Not surprisingly, Wells Fargo's Colin Langan wrote in a note to investors last week 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 significantly below Street consensus. Demand weakness in the US and EU comes after CEO Elon Musk's foray into Trump administration politics, which has caused some Tesla owners to become disillusioned with Musk, specifically by his right-leaning tendencies, support of right-wing leaders in Europe, and leadership of the Department of Government Efficiency (DOGE) in the US. Musk's recent return to his businesses from politics is seen as a welcome move, but there is concern that Musk's escapades will permanently damage Tesla's reputation. Key to changing the overall Tesla story has been the company's ongoing robotaxi tests in Austin, Texas. While the test seemed to begin smoothly earlier this week, recent videos of robotaxi rides depict Tesla vehicles going faster than posted speed limits and committing traffic violations like driving through turn-only lanes and crossing double-yellow lines. Though government regulators say they are watching, further testing and more vehicles added to the test are good news for Tesla, a company that finds its CEO touting the potential trillions in value created by AI and self-driving over the sliding fortunes of its core auto business. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-06-2025
- Automotive
- Yahoo
TSLA Stock Warning: Tesla Could Lose $1.9 Billion in Free Cash Flow This Year
Tesla (TSLA) has long been considered a bellwether of innovation. But 2025 is shaping up to be one of the electric vehicle (EV) maker's most challenging years in recent memory, with its stock facing significant volatility. While Tesla's rebound from its April lows briefly offered some relief to investors, Wells Fargo analyst Colin Langan has recently issued a grave warning: Tesla could post its first year of negative free cash flow since 2018. In a recent research note, Langan pointed to multiple headwinds dragging on Tesla's financial health, including weak delivery numbers, risks to income from regulatory credits, aggressive capital expenditures, and pricing pressures. That's a sharp reversal from the narrative of financial resilience that Tesla has leaned on in the past, and it casts a shadow over investor hopes that its Robotaxi and Optimus initiatives will materialize fast enough to justify the current sky-high valuation. 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! In this article, we will dig deeper into the risks outlined in Wells Fargo's note to help investors decide whether TSLA stock remains a viable investment or a potential risk to their portfolios. With that, let's get into it! 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. Its market cap currently stands at $1.04 trillion. Shares of the EV maker have slumped 12.8% on a year-to-date basis. TSLA stock had a rough start to 2025, tumbling from mid-January highs near $430 per share to a low of $218.80 by early April. The stock was weighed down by slowing EV sales, CEO Elon Musk's controversial political activities, and escalating U.S.-China trade tensions. TSLA stock found support around the $220 level as broader market sentiment steadied following President Donald Trump's decision to pause or reduce most of his tariffs. From a technical analysis standpoint, some traders interpret the price action as forming a triple bottom pattern, while others see an inverse head and shoulders pattern. The price then broke above the slice neckline in late April, climbing as high as $362.89. The upward move was fueled by several factors, including the U.S.-China trade truce, Musk's pledge to step back from U.S. politics and refocus on Tesla, and renewed investor enthusiasm over the company's self-driving advancements. However, the positive momentum has since faded, with TSLA shares pulling back and experiencing a sharp drop in early June amid the Trump-Musk feud. As tensions between Trump and Musk eased, the stock staged a modest rebound and has since been trading within a narrow range. In a note last week, Wells Fargo analyst Colin Langan warned that Tesla's fundamentals are deteriorating, raising concerns about the strength of its core auto business and resulting free cash flow (FCF). Langan said that the company's full-year FCF might turn negative for the first time since 2018. The firm reiterated its 'Underweight' rating on Tesla stock and a $120 price target. The bank expects a sharp drop in Tesla's vehicle deliveries, stating, 'We now expect FY deliveries down 21% y/y,' while also noting that 'Q2 deliveries look ~flat vs. a weak Q1.' Langan said that to meet the Q2 consensus forecast of 411,000 vehicles, Tesla would need a massive '>50% m/m jump in deliveries' in June. Notably, Wells Fargo's Q2 delivery forecast for Tesla is approximately 343,000 units — about 17% below the consensus estimate. The analyst added, 'We recently flagged Q2 deliveries aren't showing signs of recovery.' Indeed, Tesla's sales during the first two months of Q2 continued to disappoint. For instance, Tesla's U.S. sales declined 16% year-over-year in April, even after the Model Y refresh in March. Also, Tesla's sales in Germany dropped 36.2% year-over-year in May. In addition, Tesla's sales in the U.K. slumped by over 45% in May, and sales in Italy declined by 20%, despite overall EV market growth in both countries. Finally, Tesla's sales in China dropped 15% year-over-year in May to 61,662 units, highlighting its continued loss of market share to local rivals, particularly BYD (BYDDY). 'New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H 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.' Meanwhile, regulatory credits, which were once a vital driver of Tesla's earnings, have now become a potential risk factor. Langan said the Senate's recent vote to strip California of its authority to regulate air pollution was 'game over' for the state's regulatory board, known as CARB. The vote effectively eliminates the requirement for automakers to purchase zero-emission vehicle (ZEV) regulatory credits from companies like Tesla to offset their CO2 emissions. 'CARB's end also implies >10% EBIT risk from ZEV credits,' the analyst noted, estimating that these credits make up roughly half of Tesla's total regulatory credit income. The state of California has filed a lawsuit against the federal government in an effort to restore the ruling. The analyst also said that Tesla's aggressive capital expenditure plan, exceeding $11 billion for 2025, further contributes to the concerns. As a result of lower deliveries, lower EV credits, pricing pressures, tariffs, and aggressive capital expenditures, Wells Fargo projects a full-year FCF burn of $1.9 billion — Tesla's first negative FCF since 2018. Wells Fargo believes there could also be potential headwinds related to the company's Robotaxi. 'The FSD testing in Austin seems to be [within] 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. Still, bulls like Dan Ives of Wedbush and Adam Jonas of Morgan Stanley see Tesla's FSD and robotaxi service as the gateway to unlocking trillions in potential value. Finally, Wells Fargo continues to express concerns about Tesla's valuation. 'The stock trades at a staggering 172x consensus '25 EPS & >400x our '25 EPS,' Langan said, cautioning that Tesla's growth outlook remains negative with 'no sign of inflection.' In my previous articles on TSLA, I raised similar concerns. The company's P/E multiple was sky-high even when TSLA stock was trading near its April lows. Of course, I understand that Tesla's current valuation is largely fueled by investor optimism around future breakthroughs, but personally, I find it difficult to justify such a premium for a company whose core business continues to struggle. Unsurprisingly, the Wall Street analyst community remains cautious on TSLA stock, with recommendations varying widely among those covering the company. While 14 analysts rate the stock as a 'Strong Buy' and two as a 'Moderate Buy,' 15 suggest holding, and 10 assign a 'Strong Sell' rating. Overall, TSLA stock has a consensus 'Hold' rating. Notably, the stock currently trades at a premium compared to its mean price target of $292.03. Analysts tracking the company project a 30.9% year-over-year drop in its EPS to $1.41 for 2025, while revenue is expected to remain largely unchanged year-over-year at $97.54 billion. Over the past 90 days, Tesla has seen 32 downward EPS revisions and no upward revisions, along with 41 downward revenue revisions and none to the upside, signaling weakening fundamental momentum. In Q1, the company pulled its full-year guidance, citing economic uncertainty and its impact on the business, and said it would 'revisit' its 2025 outlook during the Q2 update. 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
Globe and Mail
19-06-2025
- Automotive
- Globe and Mail
‘Sell TSLA Stock Now,' Says Wells Fargo
Tesla (TSLA) stock lost 3.9% yesterday, after Wells Fargo issued a warning saying that the EV maker's second-quarter performance may be weaker than expected, with free cash flow (FCF) turning negative for the first time since 2018. Analyst Colin Langan stated that vehicle deliveries are not showing signs of recovering and are, in fact, tracking flat compared to an already weak Q1. 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 Langan added that in order to meet the Wall Street estimate of 411,000 units for the quarter, Tesla would need to increase June deliveries by more than 50% compared to May. As a result, the firm now projects that Tesla's full-year deliveries will fall by 21% from last year. Tesla Faces Fundamental Challenges Ahead Notably, Wells Fargo expects the lower delivery volume to hurt Tesla's profit margins. Langan also pointed out that reduced income from Zero Emission Vehicle (ZEV) credits could be another drag on earnings. When considering these factors alongside Tesla's planned capital expenditures exceeding $11 billion and potential issues with working capital, Wells Fargo now estimates FCF burn of $1.9 billion for 2025. Moreover, the firm is worried about the lack of news regarding Tesla's long-awaited affordable EV, which many bulls believe is key to increasing sales in the second half. Additionally, Tesla's robotaxi plans are not impressing Wells Fargo, as the analyst notes that Full Self-Driving tests in Austin appear limited, slow, and closely monitored, which raises the risk that any accident during a rushed rollout could cause major setbacks. Owing to the above-mentioned reasons, Langan has a Sell rating on TSLA stock with a $120 price target, which implies 62.1% downside potential from current levels. What Is the Prediction for TSLA Stock? On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings. Furthermore, the average Tesla price target of $286.14 implies 9.6% downside potential from current levels. Year-to-date, TSLA stock has lost 21.7%. See more TSLA analyst ratings
Yahoo
19-06-2025
- 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 pensionError 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
