Stifel Lowers Tesla Price Target Amid Financial Pressures
Stifel analyst Stephen Gengaro reduced his Tesla price target to $491 while maintaining a Buy rating despite the company's record vehicle deliveries.
Tesla Inc. reported record second-quarter deliveries of 480,126 vehicles and a 26% revenue increase to $28.24 billion. The company also saw active Full Self-Driving subscriptions grow 56% to 1.48 million.
Despite these gains, Tesla faces significant financial strain. Operating income fell 57% to $398 million and free cash flow turned negative at $1.09 billion. This decline was driven by a 142% surge in capital expenditures, which reached $5.79 billion.
Stifel analyst Stephen Gengaro lowered his price target for the company from $508 to $491, though he maintained a Buy rating. Gengaro cited risks regarding the economic viability of the Robotaxi service and the broader adoption of Full Self-Driving technology. Tesla shares rose approximately 2.2% to $318.18 on Monday.
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