Guggenheim’s price target represents a 48% downside to the stock’s closing price on Monday.
Brokerage Guggenheim on Tuesday said that Tesla Inc. (TSLA) shares rallied “somewhat paradoxically” over CEO Elon Musk’s updates on the company’s robotaxis operations and its Full Self-Driving (Supervised) driving assistance software over the weekend.
While Tesla shares rallied, so did autonomy-sensitive ride-hailing names like Uber (UBER) and Lyft (LYFT), which historically have been sensitive to Tesla autonomy, in what the firm calls “mixed signals from the market.”
Guggenheim keeps a ‘Sell’ rating and $175 price target on Tesla shares. The brokerage’s price target represents a 48% downside to the stock’s closing price on Monday. On Stocktwits, retail sentiment around Tesla jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume remained at ‘low’ levels. However, retail chatter around the stock rose 387% over the past 24 hours, according to Stocktwits data.
A Stocktwits user expressed hopes for the stock to rally to $350.
Another, however, opined that the stock will slump down to $225 “sooner than you can imagine.”
Tesla’s robotaxi service will be open to all users starting next month, marking the end of the current invite-only system, Musk announced on Sunday. He also said the next version of Tesla’s FSD software, in about six weeks, will be a “dramatic gain with a 10x higher parameter count and many other improvements.” “It’s going through training & testing now,” he added.
On Friday, Musk said the upcoming update will “substantially” reduce the need for driver attention, while not enabling fully autonomous driving. Drivers will still be required to remain alert in complex intersections, poor weather, or “unusual events,” which Musk did not define. He called the release a “major step-change improvement for rare conditions” and said additional Tesla AI breakthroughs would make the car feel “eerily human.”
TSLA stock is down by 16% this year but up by about 72% over the past 12 months.
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