Needham Reiterates Hold on Tesla

Needham analyst Chris Pierce reiterated a Hold rating on Tesla (NASDAQ: TSLA).

“We reiterate our Hold rating following 2Q results and company commentary.

The longer term autonomy thesis took a step forward, with the promise of autonomous driving winning consumer mindshare at accelerating rates looking at FSD uptake against reiterated Cybercab and Optimus production timelines.

Auto demand has perked up against temporarily elevated gas prices, but margins missed consensus estimates despite the unit beat and we see further demand headwinds ahead as the Model Y faces its first legitimate competition from RIVN’s R2 vehicle, with the Energy business surprising to the downside as well, putting more pressure on TSLA’s legacy business lines ahead of increased capex spending to fund future products with still unknown payoffs.

We continue to view the risk/reward as balanced with the stock trading at ~30x our FY30E adj EBITDA.”

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