Deutsche Bank lowers Tesla's price target but maintains 'buy' rating
On July 27, Deutsche Bank reduced its price target for Tesla (TSLA) to $420 from $465 while keeping its 'buy' rating. The adjustment reflects slower-than-expected progress on the robotaxi service and Optimus humanoid robot projects, as well as waning investor enthusiasm for physical AI advancements. Analyst Edison Yu noted that Tesla may face a period without major milestones until late in the year amid rising cash burn. Despite this, Deutsche Bank still sees about 34% upside from current levels following recent stock declines after earnings reports. Other banks also revised their targets: Morgan Stanley lowered its target to $400 and Cantor Fitzgerald cut theirs to $485. The revisions highlight the sensitivity of Tesla's valuation to timing assumptions, especially for products that have yet to generate significant revenue.
Topics: Deutsche Bank Investor Sentiment Stock Analysis Tesla