Truist Reduces Tesla’s Price Target to $438

Truist Securities analyst William Stein lowered the price target on Tesla to $438 (from $439) while maintaining a ‘Hold’ rating on the stock.

1. TSLA is stopping production of Model S/X;
2. it is making significant investments in 6 new production lines and training hardware, more than doubling capex from $8.5B to $20B this year, with more spend to come, and
3. it is establishing AI-related operational bogeys for CY26. We believe these will make auto deliver data decreasingly relevant.

The fundamental changes are positive, in our view, but our updated DCF barely budges to $438 (from $439), so we stay on the sidelines. Hold.”