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Investor's Corner

Tesla price target reductions, Rivian recall take focus as EV stocks slide

Credit: Tesla

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Electric vehicle stocks are continuing to slide on Monday as a broader market turnover continues to affect the economy. Tesla faced several price target reductions on Monday morning amidst a lower-than-expected delivery count for Q3, while Rivian shares are down due to a recall that affected over 12,000 vehicles. However, these are not the only two companies facing heat during Monday’s trading session.

Tesla

Tesla (NASDAQ: TSLA) shares have been beaten and battered over the past month, down over 27 percent. Last week alone accounted for a nearly 12 percent slip in Tesla share price, attributed to a weaker-than-anticipated delivery count when the company announced Q3 numbers earlier this month. Tesla delivered 343,890 vehicles but missed Wall Street expectations. The automaker detailed difficult supply chain conditions for the slide in deliveries, which ultimately ended up occurring in Q4 instead of Q3.

“As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks,” Tesla said when it announced the delivery figures on October 2. “In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”

These issues, while contributing to early Q4 deliveries, encouraged Morgan Stanley’s Adam Jonas to trim his Tesla price target from $383 to $350.

“We believe factors that drove Tesla’s weaker than expected 3Q production and deliveries could continue to present headwinds into 4Q as well as into FY23,” a note to investors said. Morgan Stanley trimmed its 2022 delivery outlook from 1.37 million vehicles to 1.31 million. The firm also revised its 2023 forecast by 200,000 cars from 2 million to 1.8 million.

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“We reiterate our OW (overweight) rating on Tesla and continue to position the name as a core holding.”

Tesla also had its price target trimmed by UBS from $367 to $350, as analyst Patrick Hummel maintained a “Buy” rating. RBC Capital Markets analyst Joseph Spak also cut the firm’s price target on Tesla to $340 from $367.

Tesla shares were trading at $222.79 at the time of publish.

Rivian

Rivian (NASDAQ: RIVN) saw more than a 10.5 percent dip in Monday trading following a recall of more than 12,000 vehicles on Friday.

Rivian announced last week that it was issuing a recall on 12,212 R1T, R1S, and EDV (Electric Delivery Van) units due to a “loose steering knuckle fastener.” The NHTSA stated, “The fastener connecting the front upper control arm and steering knuckle may have been improperly tightened,” which may cause the fastener to separate and cause a loss of vehicle control.

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“This is a black eye for Rivian now just starting to hit its stride on reaching its 25k production target,” Wedbush analyst Dan Ives said. “A modest setback.”

Rivian shares were trading at $30.63 at the time of publish.

Other EV Stocks: A rough day on Wall Street

Lucid (NASDAQ: LCID), Nio (NYSE: NIO), Li Auto (NASDAQ: LI), and Ford (NYSE: F) were all down at least 3 percent at 11:20 A.M. on the East Coast.

Ford’s 7.2 percent drop on Monday was the most notable. Wall Street continues skepticism on whether legacy automakers like Ford and GM can remain afloat among rising competition and a robust lineup of carmakers that show more promise in the EV sector. Analysts at UBS downgraded Ford and lowered its price target to $10 from $13. The Motley Fool stated in its synopsis of Ford’s struggles that the company’s key metrics for September were the weakest among U.S. automakers, making it more vulnerable during a recession than its peers.

Price increases on Ford’s F-150 Lightning have indicated the company is making the right moves to keep margins in the right place. Additionally, the company is feeling healthy demand from consumers as it recently suspended accepting orders on the Mustang Mach-E’s base trim, citing high demand and a long order backlog.

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Ford stock was trading at $11.32 at the time of publish.

Disclosure: Joey Klender owns Tesla stock, but no shares of any other automaker mentioned in this article.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

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(Credit: Tesla)

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.

The TSLA Purchase

As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.

Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.

Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

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Just a Few Weeks Before Robotaxi

The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.

During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated. 

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Investor's Corner

Tesla hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Elon Musk

Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results

Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

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(Credit: Tesla)

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.

Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.

“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.

“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.

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Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.

Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.

As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.

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