BNP Paribas Lowers Tesla Price Target Amid Concerns Over High Capital Expenditure
Analysts at BNP Paribas have lowered their price target for Tesla to $266 per share from $268, citing concerns over the company's capital expenditure plan exceeding $25 billion. This represents a 30% downside compared to Tesla’s recent trading level and follows disappointing third-quarter delivery results. The firm also reduced its sales estimate by 2%, highlighting worries about negative free cash flow impacts for the remainder of the year. Tesla plans to use the funds primarily on AI development and repurposing production lines for Optimus, a humanoid robot. However, BNP Paribas analysts remain skeptical given Tesla’s current low output in these areas—only 169 Cybercabs produced so far with no Optimus robots available for sale. In contrast, Deutsche Bank raised its price target to $420 per share after Tesla outperformed delivery expectations. The firm praised strong international performance and inventory drawdowns as positive factors despite lowering full-year EPS forecasts slightly.
Tickers: $TSLA
Topics: Analysts' Outlook Capital Expenditure Free Cash Flow Tesla