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March 10 - UBS analysts revised their outlook for Tesla (TSLA, Financial), lowering the electric vehicle maker's price target from $259.00 to $225.00 while retaining a "Sell" rating.
The revision follows disappointing Q4 2024 results that forced UBS to reduce its Q1 2025 delivery forecast to 367,000 vehicles from an earlier estimate of 437,000.
UBS noted that the current run-rate appears slower, although a potential surge in deliveries toward the end of the quarter could emerge from increased promotional efforts.
Meanwhile, Tesla's revenue for the last 12 months stood at $97.69 billion and grew by a modest 0.95%, while UBS's Evidence Lab reported lower delivery times for the Model 3 and Model Y in key markets, reflecting softer demand. That said, a downward revision of Tesla's auto gross margin, excluding credits, to 10.3% compared to 13.6% in Q4 2024 and 16.4% in Q1 2024 was also prompted by this observation.
Based on input from 45 Wall Street analysts, the consensus for Tesla's mean target price is $338.49, with estimates ranging from a low of $24.86 to a high of $550. This average target implies an approximate upside of 28.87% from the current trading price of $262.67. In a separate assessment, GuruFocus estimates Tesla's one-year GF Value at $299.83, indicating a more conservative upside potential of about 14.15% from the current price.
This article first appeared on GuruFocus.