Bank of America analyst John Murphy has downgraded Tesla’s stock from “Buy” to “Neutral” due to execution risks, but raised his price target from $400 to $490 per share. The downgrade comes after a notable rise in the company’s shares since Donald Trump secured his win in the 2024 US presidential elections.
Tesla’s post-election rally and Q4 results were weaker than expected, with the company posting an overall annual sales decline. However, Tesla Energy had a strong year, deploying a record 11 GWh of energy storage in Q4 and 31.4 GWh in FY 2024.
Murphy noted that while investor sentiment has shifted more positively, there are still execution risks for the company this year, including the introduction of new models, the launch of robotaxi, and updates on autonomous driving technology. He also highlighted the importance of a low-cost model and megapack production ramping up at Shanghai assembly plant.
Despite these risks, Murphy’s analysis suggests that Tesla has catalysts ahead that could support the stock price. However, his Neutral rating reflects the need for the company to demonstrate strong execution in key areas.
The downgrade marks a shift in Murphy’s view on Tesla, which he had upgraded in April 2024. His updated price target of $490 is still above the current market price, implying upside potential for the stock.
Source: https://www.teslarati.com/tesla-tsla-stock-downgraded-neutral-bank-of-america