Latest news with #Gengaro
Globe and Mail
01-04-2025
- Automotive
- Globe and Mail
Tesla Stock Plunged 34% in Q1. Should You Buy the Dip or Stay Away From Shares Here?
Tesla (TSLA) has had an unusually bad start to the new year. Its shares tanked an alarming 34% in the first quarter of 2025, marking their worst quarterly performance in about three years. Tesla's reputation is being dragged through the mud as its billionaire chief executive, Elon Musk, continues to be involved in politics. Recent acts of vandalism and arson against TSLA are even making its drivers switch to other EV brands in 2025. In fact, about 50% of the orders Lucid (LCID) received in recent months came from former Tesla owners, according to its top boss, Marc Winterhoff. Still, Stephen Gengaro – a Stifel analyst – remains bullish as ever on TSLA shares. Tesla Stock Is Better Positioned to Weather Tariffs Gengaro does not expect Musk's 'missteps' to leave a lasting impact on the Tesla share price. He recommends capitalizing on the year-to-date decline in the EV stock as it's significantly better positioned than other automakers to weather President Donald Trump's recently announced a 25% tariff on all imported vehicles. 'We expect share price volatility to persist in near term, but remain optimistic on TSLA's medium to long-term prospects,' the analyst told clients in a research note this week. Gengaro's 'buy' rating on Tesla stock comes with a price target of $455 that indicates potential upside of about 65% from current levels. TSLA Shares Could Benefit from FSD Launch Tesla is committed to launching new, more affordable electric vehicles in the coming months to mitigate the sales decline that's been adding to pressure on its stock price this year. By June, the multinational is expected to introduce unsupervised full self-driving in Texas, which may also help unlock significant further upside in TSLA shares, the Stifel analyst argued. Finally, he sees the company's energy storage business serving as a catalyst as well. Note that Tesla stock is currently down more than 40% versus its record high in December 2024. Wall Street Believes in Tesla's Ability to Recover Tesla's ongoing challenges have made several analysts lower their price target on the EV stock in recent weeks. Still, the mean target on TSLA shares currently sits at $334 that indicates potential upside of more than 20% from here.
Yahoo
01-04-2025
- Automotive
- Yahoo
Tesla's Short-Term Hit Doesn't Shake Long-Term Case, Says Stifel
Tesla (NASDAQ:TSLA) is facing a challenging quarter, with delivery expectations for Q1 2025 subdued amid slowing consumer demand. Stifel analyst Stephen Gengaro attributes the drag to a mix of factors, including anticipation for upcoming models and public backlash related to CEO Elon Musk. The launch of the refreshed Model Y and a lower-priced vehicle expected later in 2025 is creating near-term uncertainty, Gengaro noted. Tesla's Q1 and full-year delivery estimates have been revised downward to 353,418 and 1.86 million, respectively, from previous forecasts of 458,672 and 2.08 million. Political sentiment is also shifting. Stifel data shows a decline in favorability toward Tesla among Democratic voters, adding another headwind to short-term demand. Still, Gengaro sees longer-term potential. The rollout of Tesla's unsupervised full self-driving system is expected to begin in Austin, Texas in June, with expansion later in the year. He also sees limited impact from upcoming U.S. auto import tariffs, given Tesla's domestic production base. Despite trimming the price target to $455 from $474, Gengaro reiterated a Buy rating, projecting approximately 72% upside. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
31-03-2025
- Automotive
- Globe and Mail
Why Tesla (TSLA) Shares Are Trading Lower Today
What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 6.4% in the pre-market session after anxiety and uncertainty rattled markets as the major stock indices pulled back in the morning session amid concerns about "reciprocal tariffs" to be announced later in the week. The planned tariffs, scheduled for April 2, 2025 (dubbed Liberation Day), were targeted at all countries where the United States had a trade deficit. Simply put, if a US trading partner imposed higher tariffs on American goods than the US did on theirs, the "reciprocal tariffs" would apply. The prospect of heightened trade tensions seemed to have stoked fears of stagflation (slower economic growth and elevated inflation) as the anticipated tariffs will likely raise input costs for businesses. Separately, Stifel analyst Stephen Gengaro lowered the stock's price target, citing concerns related to the slow rollout of the new Model Y. Gengaro noted that Model Y sales may be limited by several headwinds, most notably, a slowdown in global EV demand and intensifying competition. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tesla? Access our full analysis report here, it's free. What The Market Is Telling Us Tesla's shares are extremely volatile and have had 125 moves greater than 2.5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock dropped 6.3% on the news that stocks pulled back (Nasdaq -1.5%, S&P 500 -1.2%) amid fresh concerns about trade tariffs. The pullback followed comments from President Trump clarifying the scope of his administration's 25% tariffs on Venezuela. He noted that it would apply to any country that does business with Venezuela. For example, 25% is on top of the already-in-place 20% tariff on China because China imports oil from Venezuela, which could translate to a 45% tariff on some Chinese goods. This announcement could significantly raise the operating costs for affected companies and institutions. Adding to the market unease, the President announced plans for new tariffs on auto imports before the planned "reciprocal" tariffs on April 2, 2025. Tesla is down 32.7% since the beginning of the year, and at $255.01 per share, it is trading 46.9% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla's shares 5 years ago would now be looking at an investment worth $7,302. Today's young investors won't have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
31-03-2025
- Automotive
- Yahoo
Why Tesla Stock Is Down Again Today
Shares of the electric carmaker Tesla (NASDAQ: TSLA) once again found the red today, as stocks extended their sell-off and another analyst lowered his price target on the stock. Tesla is trading about 5% lower as of 11:08 a.m. ET. Stifel Financial analyst Stephen Gengaro issued a report this morning, lowering his price target on Tesla by $19 to $455. This still implies over 72% upside, and Gengaro maintained his buy rating on the stock. Gengaro's near-term concerns are shared by a growing chorus of analysts who expect Tesla to report weaker first-quarter deliveries due to a slow launch of Tesla's new Model Y, a potential hit from CEO Elon Musk's foray into politics, and reports of vandalism to Tesla vehicles. Still, Gengaro is bullish long-term and thinks current headwinds are near-term issues. "The ramp of the new Model Y, the best-selling car in the world in 2024, is clearly a short-term sales headwind," Gengaro said in his note. "As Model Y production ramps in 2025, we expect sales to accelerate." Gengaro is also bullish on the upcoming launch of Tesla's unsupervised full-self-driving technology in Austin and the launch of a lower-cost vehicle later this year. Gengaro also thinks that the company's energy storage division could be another catalyst not baked into the stock price yet. Bearish analysts are more concerned about first-quarter deliveries, while bullish analysts are looking ahead to catalysts powered by Tesla's potential artificial intelligence capabilities, which Musk expects to power new businesses like self-driving and robotics. Those may pan out, but with Tesla still trading at 93 times forward earnings, I'm avoiding the stock for now. At this kind of valuation, unexpected bad news from tariffs, the company's first-quarter earnings, or delays in future business launches could lead to big sell-offs, which is why I still don't like the risk-reward setup. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Why Tesla Stock Is Down Again Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
31-03-2025
- Automotive
- Yahoo
Tesla stock falls amid investor concerns over Trump tariffs, Elon Musk's government ties
Tesla (TSLA) stock fell as much as 6% Monday, leading Big Tech stocks downward amid investor concerns over President Trump's tariff policies and CEO Elon Musk's government role turning off potential buyers. Trump is set to impose 25% tariffs on foreign autos and certain auto parts this week. Although Tesla stands to suffer less than other auto companies from the tariffs, Musk himself has said the impact of the duties on the company is 'still significant' and the company is 'NOT unscathed.' Even Tesla bull Dan Ives, who has mostly remained positive on the company until recently, noted Monday: 'The winner in our view from this tariff is no even Tesla still is clearly hit from these tariffs and will be forced to raise prices.' Tesla's drop Monday puts the stock down more than 38% in 2025. The company is set to release its EV sales numbers for the March quarter on Wednesday. The Elon Musk-helmed company is expected to report deliveries of 390,342 vehicles on average, per Bloomberg data. Some analysts expect that number to be lower. Stifel analyst Stephen Gengaro said Sunday he expects Tesla to report deliveries of 353,418 electric vehicles, while RBC Capital analyst Tom Narayan expects deliveries of 364,000. Gengaro cited souring sentiment on Elon Musk from Democrats due to his foray into government. There are signs Musk's closeness to Trump as well as his embrace of right-wing politicians in Europe has hurt Tesla's brand, with sales slipping in key regions. Gengaro also suggested customers are waiting for the rollout of a highly-anticipated, new affordable Tesla model as well as the new Model Y, hampering sales short-term. 'The ramp of the new Model Y, the best-selling car in the world in 2024, is clearly a short-term sales headwind,' Gengaro wrote. 'In addition, protests against Elon Musk (damage to Tesla sites, vandalism of customer-owned cars, damage to Superchargers) is a headwind to sales.' Gengaro lowered his price target on Tesla to $455 from $474 but maintained his Buy rating. Meanwhile, RBC Capital's Narayan cited weak sales in China — with competition from Chinese EV maker BYD mounting — and lower demand in Europe due to EU tariffs on Chinese exports. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
