Jefferies Reiterates Hold Rating on Tesla (TSLA)
Jefferies analyst Philippe Houchois reiterated a Hold rating and $165.00 price target on Tesla (NASDAQ: TSLA)
The analyst comments "Q2 results mostly confirmed the growing importance of storage (16% of gross profit) and a return to +ve FCF ($1.3bn) on modest WC reversal and reduced capex but also as record ZEV income ($890m). Auto ASPs continued to drift but unit COGS stabilized. Clean EBIT margin improved 90bps from Q1 to 5.4% on storage contribution and crushed opex but, in our view, do not support meaningful upgrades to current consensus. Earnings call and Q&A circled around mostly known topics with reiteration of earlier comments on TAMs (Humanoids>Robotaxis>Cars), vague comments on the robotaxi business models and very little incremental information, from future products (Affordable leveraging existing capacity vs Robotaxi using box process, no timing) to progress on 4680 output (+50% vs Q1) and delayed investment in Mexico to the benefit of Austin pending clarity on election/tariffs and, in our view, excess current capacity."
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Shares of Tesla closed at $246.38 yesterday.