Analysts largely view Tesla's fourth-quarter results as lackluster. The electric vehicle giant reported fourth-quarter earnings and revenue that missed expectations. The company also noted that automotive revenue pulled back 8% in the fourth quarter compared to a year earlier.
Overall revenue, however, inched up roughly 2%, while its net income was aided by a $600 million gain thanks to an accounting rule change that affected its bitcoin holdings throughout the quarter. To be sure, Tesla's total net income plummeted 71% from a year earlier. Shares did tick slightly higher in the premarket on the back of the results.
Here's what analysts at some of the biggest shops on Wall Street had to say on the report. Wells Fargo, underweight, $125 per share price target Analyst Colin Langan's forecast implies about 68% downside from Wednesday's close. "We see moderating delivery growth driven by lower demand & diminished return on price cuts.
We are cautious on margins given likelihood of more price cuts & lower volumes," Langan said. "Moreover, we are concerned about the rollout of their next models and their demand & margins. We also see risks around increased US regulation on Autopilot & risk to the rollout of previously promised technologies (Dojo, Optimus, true FSD, etc.
)." UBS, sell rating, $259 per share price target Despite UBS' sell rating, the firm upped its price target to $259 per share from $226. This still equates to more than 33% downside.
"It's one thing to say we believe.