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Tesla gets ‘Outperform’ rating amid improving ‘fundamentals’ and Model 3 ramp

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Tesla shares (NASDAQ:TSLA) received a vote of confidence from Wall Street on Thursday, as Oppenheimer reiterated its “Outperform” rating on the company and Loup Ventures managing partner Gene Munster noted that the electric car maker’s fundamentals could outweigh the controversy currently surrounding CEO Elon Musk.

Oppenheimer analyst Colin Rusch wrote in a note to clients on Thursday that Tesla seems poised to meet its targets for Model 3 production and profitability in Q3. Rusch’s note comes amidst Musk seemingly expressing his support of a report recently published by electric car-themed website InsideEVs, which listed the Model 3, Model S, and Model X, as the Top 3 best-selling electric cars in the United States for August.

“While InsideEVs‘ estimates are just that, estimates, we believe the service has been effective in identifying directional and order of magnitude trends on monthly shipments for Model 3 in lieu of verified data from the company. We believe TSLA is tracking toward achieving its 3Q:18 guidance. We believe TSLA has the potential to be a transformational technology company and deliver outsized returns,” Rusch noted.

Rusch reiterated Oppenheimer’s “Outperform” rating on TSLA stock, while also reaffirming his 12-18 month price target of $385 — a 37% upside to Wednesday’s close.

Loup Ventures managing partner Gene Munster also expressed his optimism about Tesla’s Q3 performance in a recent interview with FOX Business. When asked about his views on the controversies currently surrounding Elon Musk and the stock’s recovery this Thursday, Munster noted that behind the CEO’s questionable online behavior is a company whose fundamentals are improving.

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“There’s two sides of the ledger. The side of Elon Musk as a leader — and as someone who has been an investor, an adviser, and an analyst for many years — that has been, to say, concerning is an understatement, his behavior over the last six months, and the last few weeks in particular. The other side of the ledger is how the business is doing, and I suspect that the reason why the stock is up is that he’s out today saying that their sales are going well. He made some tweets related to that. They (also) had an order of 30 other Semis from Walmart.

“If, in fact, they do exit the September quarter profitable, which is what they’ve predicted, I think that that will basically trump any of the negativity we’ve seen around him. So our bet is that the fundamentals are gonna outweigh this concerning and inexcusable behavior,” he said. 

Robots assemble electric cars in Tesla’s Fremont factory.

Tesla stock has seen a wild August, particularly after Elon Musk posted a tweet stating that he is thinking of taking the company private at $420 per share, and that he had “funding secured.” The days and weeks following the announcement were tumultuous in the least, with lawsuits, reports of SEC investigations, and Elon Musk’s capability to lead Tesla being questioned by the company’s critics. Tesla’s stock mostly dropped in August after Musk’s tweet, culminating in Wednesday’s close when the stock ended the day at $280.74 per share.

Based on strategies that Tesla adopted over the past two quarters, there is a good chance that the company will push the Model 3 even more this September, which is the final month of Q3 2018. Tesla, after all, has a tendency to adopt radical strategies during the last month of a quarter, as seen in its production blitz during the final week of March when it built more than 2,000 Model 3 in seven days, as well as its initiatives in June when it built GA4 and air-freighted robots from Europe in an attempt to hit its target of producing 5,000 Model 3 in one week. 

Tesla is attempting to produce 50,000-55,000 Model 3 this quarter while hitting profitability at the same time. While these are ambitious goals, the company has been showing signs that it is capable of actually meeting its Q3 targets. The company, for one, has shown that it can sustain its pace of manufacturing 5,000 units of the electric car in a week, which was confirmed by Elon Musk during the Q2 2018 earnings call. Tesla might also be within reach of its goal in terms of profitability, especially considering that Detroit veteran Sandy Munro concluded that the Long Range RWD Model 3, which would likely comprise a significant number of the company’s deliveries this Q3, exceeds 30% profit after a thorough teardown and analysis of the vehicle.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Investor's Corner

Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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tesla-model-y-giga-texas-logo
(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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