Analysts at BNP Paribas have maintained their bearish outlook on Tesla, contrary to the consensus on Wall Street. The firm has given Tesla an underperform rating with a price target of $280, significantly lower than the consensus hold rating and $397.26 price target according to MarketBeat. This bearish stance is based on skepticism surrounding Tesla’s plans for Robotaxi and Optimus by 2026.
BNP Paribas analysts are particularly skeptical about Tesla’s progress in the Robotaxi and humanoid robot sectors. They have noted that Tesla’s growth in Robotaxi operations in Austin and San Francisco has plateaued, casting doubt on the company’s expansion plans in Dallas and Houston. The analysts even question the legitimacy of Tesla’s “launches” in these cities.
Furthermore, analysts believe that Tesla will face significant challenges in meeting CEO Elon Musk’s ambitious target of expanding into 7 cities by the end of the year. They also express doubts about the company’s progress in commercializing Optimus, Tesla’s humanoid robot project aimed at producing 1 million robots annually.
The analysts point out Tesla’s substantial cash burn this year, estimated at $7 billion by BNPP, and anticipate massive investments in projects like TeraFab and 100 GW solar capacity. They emphasize that the success of Tesla’s Robotaxi and Optimus initiatives is crucial given the high stakes involved.
On the other hand, BNP Paribas analysts are more bullish on Rivian, Tesla’s domestic EV rival, despite its lag behind Tesla. Rivian has set more achievable goals for the year, which analysts at BNPP view positively. Rivian’s shares have a $23 price target, representing a 26% increase from its closing price on April 20.
In terms of recent developments, Rivian introduced its Gen 3 Autonomy Computer, a cutting-edge compute platform with advanced capabilities for hands-free driving. The company also offers a 60-day trial of Autonomy+ with all vehicle deliveries. These advancements have bolstered analysts’ confidence in Rivian’s potential.
While Tesla’s stock experienced a slight dip on April 20, it has seen an overall upward trend leading up to the earnings announcement on April 22. Barclays analysts maintain an equal-weight rating on Tesla, citing uncertainties around Tesla’s Robotaxi and Optimus progress. TD Cowen analysts, on the other hand, remain bullish on Tesla, believing that the company is well-positioned to provide investors with reassurances and maintain guidance credibility.
Overall, the contrasting views on Tesla and Rivian reflect the dynamic landscape of the EV industry. Tesla faces challenges in meeting ambitious targets, while Rivian’s more pragmatic approach resonates with investors. As the industry evolves, both companies will continue to shape the future of electric vehicles and autonomous driving technologies.
