Redburn says sell Tesla stock as EV maker faces tough outlook on tariffs and pricing
Redburn Atlantic recommended Tuesday that investors sell their Tesla stock, as the research firm expects another year of volume declines and strained cashflow. "Our challenging earnings outlook incorporates headwinds from electric vehicle (EV) pricing, Mexico-US and China-Europe tariffs," Redburn analyst Adrian Yanoshik told clients in a note. Redburn's estimates for Tesla's earnings and free cash flow this year are 10% below the Wall Street consensus as the firm sees more downside risk, Yanoshik said. "We note even further risks for downgrades associated with a possible rescinding of US Inflation Reduction Act (IRA) clean vehicle credits," the analyst said. TSLA YTD mountain Tesla stock performance Redburn has stock price target for Tesla of $160, which suggests about 44% downside from Monday's closing prices of $285.88 per share. Tesla stock has fallen about 30% so far this year. "Although aimed at reinvigorating sales, we only consider a modest net volume uplift from the refresh of the Model Y (which started deliveries in March) and Tesla's lower-price model that the company has yet to reveal, scheduled for a June launch," Yanoshik said.
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