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Research Alert: CFRA Lowers Opinion On Shares Of Tesla Inc. To Sell From Hold
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Research Alert: CFRA Lowers Opinion On Shares Of Tesla Inc. To Sell From Hold
Sep 16, 2025 6:30 AM

09:10 AM EDT, 09/16/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month target of $300, based on a 2026 P/E of 146x, justified by long-term growth expectations. We lower our opinion on TSLA to Sell, as we believe the stock's valuation has become decoupled from fair value and underlying fundamentals. We think the Street's estimates will be revised lower in the coming months as the bottom line impacts of the One Big Beautiful Bill become more apparent. We lower our 2025 EPS view to $1.40 from $1.70 and 2026's to $2.05 from $2.60. Our concerns are more centered on the expected impacts on TSLA's auto regulatory credit revenue, a high-margin, fast-growing revenue stream (+54% to $2.76B in 2024). While news of CEO Elon Musk's $1B stock purchase sends a positive signal to investors, we view it as more of vote of confidence in TSLA longer term (a duration longer than the 12-month timeframe that is the basis of our price target). We think Musk's acknowledgment of the possibility of "a few rough quarters" ahead on the last earnings call should not be taken lightly.

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