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Tesla (TSLA) Stock: Musk’s EV Giant Hits Speed Bump After Wednesday’s Record Rally
After a record-breaking rally on Wednesday, which saw the company’s stock surge 22.7%, Tesla (TSLA) stock dropped 3.4% yesterday, indicating that investors have taken a step back to reevaluate the electric vehicle manufacturer’s prospects.
In response to these new developments, analysts at Mizuho Securities have revised their expectations for the company. They reduced their first-quarter 2025 estimates from $22.30 billion in revenue and $0.57 EPS to $20.53 billion and $0.51 EPS respectively. This represents a significant decrease from previous projections.
Furthermore, Mizuho has also scaled back their full-year 2025 forecasts, cutting revenue expectations by 6% and EPS predictions by 11%. The revised estimates now stand at $101.03 billion in revenue and $2.60 EPS. Although these reduced projections may have caused investors to reassess the stock’s value, Mizuho remains committed to its Outperform rating.
Despite this recent downturn, Tesla maintains its position as the leader in the U.S. electric vehicle market. However, the firm acknowledges potential challenges in expanding its market share in the European Union and China as competition becomes more intense. In a bid to mitigate these risks, Tesla is exploring new opportunities in India, where they are engaged in talks with Indian officials.
As the company navigates this complex landscape, it’s worth noting that some analysts believe the stock may be slightly overvalued at its current levels, given its price-to-earnings ratio of 118.73 and beta of 2.58.
In response to recent comments from Peter Navarro, a top trade adviser to President Trump, Elon Musk pushed back against being labeled a “car assembler.” This exchange highlights the ongoing debate regarding tariffs and their potential impact on Tesla’s global manufacturing and sales strategy.
In conclusion, while this sudden downturn may have taken some investors by surprise, Mizuho remains optimistic about Tesla’s long-term prospects.
Source: https://coincentral.com/tesla-tsla-stock-musks-ev-giant-hits-speed-bump-after-wednesdays-record-rally/
