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Tesla (NASDAQ:TSLA) posts weaker-than-expected fourth-quarter earnings and revenue, raising concerns among analysts. Automotive revenue drops 8% from a year ago, while total revenue rises 2%. Net income falls 71%, though a $600 million accounting gain from Bitcoin holdings offsets some losses.
Shares see slight gains in premarket trading. Wells Fargo sees trouble ahead, assigning a $125 price target and citing slower delivery growth, shrinking margins from price cuts, and regulatory uncertainty around Autopilot. UBS boosts its target to $259 but still expects 33% downside, arguing Tesla's AI and robotics push won't significantly impact earnings before 2026.
Goldman Sachs (NYSE:GS) keeps a neutral stance at $345, pointing to risks with FSD development and lower-than-expected delivery growth. Evercore ISI sets a $275 target, noting that Tesla's EV and energy sector now makes up less than 40% of its market cap, complicating quarterly assessments.
Morgan Stanley (NYSE:MS) remains bullish at $430, predicting Tesla's AI expansion will open new market opportunities.
This article first appeared on GuruFocus.