Tesla earns a buy rating with a $389.27 price target, as analysts look past Q2 margin compression to focus on the long-term scaling of FSD and Robotaxi infrastructure.
Tesla receives a BUY rating with a $389.27 price target, though Q2 EPS missed estimates and free cash flow turned negative, with the bull case hinging on Robotaxi and FSD scaling.
General Motors is cited as a profitability contrast, trading at a P/E of 29 with raised EBIT guidance, providing a benchmark for Tesla's AI optionality valuation.
Ford is mentioned for its Ford Pro subscriber growth and Model e losses, offering a sanity check on Tesla's FSD subscription ramp and EV profitability challenges.
Tesla maintains a BUY rating with a $389.27 price target despite a 39% EPS miss and negative $1 billion in free cash flow during Q2. The investment thesis hinges on the scaling of Robotaxi and FSD, which currently face skepticism from prediction markets. While legacy automakers like GM and Ford provide a profitability benchmark, Tesla's valuation remains tied to its long-term AI and autonomy roadmap.
The buy rating is driven by the long-term potential of Tesla's AI and autonomy ecosystem, specifically FSD subscription growth and Robotaxi scaling, which analysts believe justifies a premium valuation over legacy automakers.