Staff Reporter
Stifel analyst Stephen Gangaro has recently adjusted his price target for Tesla (TSLA) from $455 to $450, while maintaining a buy rating on the stock. Although a price target cut is typically viewed negatively, this change is minimal and still suggests a promising 73% upside over the next 12 months.
A Balanced Perspective
Gangaro’s rationale for the buy rating remains solid. While Tesla is currently facing some short-term challenges, there are also several catalysts that could boost its stock value in the near future.
Tesla’s management has openly acknowledged recent hurdles, including issues related to tariffs and brand perception. Deliveries fell short of expectations in the first quarter, partly due to production delays in rolling out new Model Ys—the best-selling car in the world for 2024.
Near- and Long-Term Catalysts
Long-term investment strategies often pay off better than chasing undervalued stocks, and this is particularly relevant here. Gangaro points out that CEO Elon Musk plans to dedicate more time to Tesla starting in May.
Management has confirmed that lower-cost models are set to launch this year, with the Cybercab on track for mass production in 2026. Additionally, the “robotaxi,” which will be based on a fully autonomous Model Y, is expected to arrive in Austin by June.
During the earnings call, CFO Vaibhav Taneja noted that they successfully sold out the legacy Model Y in the U.S., China, and other markets during the quarter. This is a significant development, as it means Tesla won’t need to offer incentives to sell these older models, helping to stabilize pricing and demand for the new versions.
These potential positive developments could lead the market to recognize the long-term benefits of Tesla’s innovations, including revenue from robotaxis, brand growth, and increased sales from new models. If the tariff situation resolves favorably, there could be even more upside for Tesla stock.
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