Deutsche Bank lowers Tesla price target but maintains buy rating
On July 27, Deutsche Bank reduced its price target for Tesla (TSLA) from $465 to $420 while keeping its 'buy' rating. The adjustment reflects concerns over slower-than-expected scaling of the robotaxi service and Optimus humanoid robot projects, as well as a cooling in investor enthusiasm around physical AI advancements. Analyst Edison Yu highlighted that Tesla may face an extended period without major milestones until late 2026 while cash burn increases. Despite this, Deutsche Bank's revised target still implies about 34% upside from the stock’s recent closing price, though it has fallen nearly 16% in two sessions following mixed Q2 earnings. The move is part of a broader wave of post-earnings revisions across Wall Street, with other banks like Morgan Stanley and Cantor Fitzgerald also adjusting their targets. The differing outlooks underscore uncertainty around Tesla’s near-term execution as it shifts focus to new product timelines.
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