Tesla Stock Is Hit By Its Latest Earnings. Bullish Analysts Aren't Worried

Tesla (TSLA) banal tumbled Wednesday, a time aft nan electrical conveyance (EV) shaper reported weaker-than-expected earnings.

The results, arsenic good arsenic nan heap of updates offered connected Tesla's convention call, near Wall Street analysts divided connected nan company's outlook.

More bullish analysts, for illustration those astatine Wedbush and Piper Sandler, were optimistic astir early efforts specified arsenic Tesla's planned autonomous "robotaxis" and updates to its self-driving software. JPMorgan analysts, meanwhile, focused connected Tesla's little profits, reiterating a position that Tesla banal has go "divorced from nan fundamentals."

Tesla shares were precocious down astir 11%, astir representing their year-to-date diminution aft gains earlier this month.

Bulls Eye Tesla Robotaxis, While Bears Focus connected Vehicle Sales, Profit Margins

Wedbush analysts person many times called Tesla much of an artificial intelligence (AI) and robotics institution than a accepted car company. They wrote Wednesday that they weren't expecting "major fireworks" from Tuesday's earnings, and were much focused connected nan semipermanent imagination for nan company.

EV request metrics are improving, they wrote, and Tesla's AI efforts are "on nan doorstep" of starting to salary off, including pinch nan coming robotaxis. CEO Elon Musk said during Tuesday's net call that a robotaxi debut arena was delayed to Oct. 10 from August.

Piper Sandler analysts, raising their value target to $300 from $205, citing Tesla's semipermanent imaginable pinch robotaxis and imaginable licensing deals for its self-driving technology. "Sequential fluctuations successful automotive gross separator hardly warrant mention, successful nan discourse of Tesla's wider ambition," Piper Sandler analysts wrote.

Bank of America analysts maintained a "buy" standing while lowering their value target to $225 from $260, cutting immoderate 2024 estimates for Tesla while saying nan institution has "a number of catalysts ahead" for illustration robotaxis and cost-cutting efforts that could thrust nan banal higher.

JPMorgan analysts maintained an "underweight" standing and a $115 value target. The analysts said Tesla's operating profit would person been "materially worse" if it hadn't received larger benefits from regulatory credits than expected.