Investment bank Cantor Fitzgerald cut its price target on TSLA to $355 from $425. However, the bank kept an Overweight rating on the shares, as it believes that the automaker’s long-term outlook remains bright.
Tesla’s Potential Growth Catalysts
Among Tesla’s upcoming, potential, positive drivers are its robotaxi launch and its unveiling of a relatively inexpensive EV, according to Cantor Fitzgerald.
Further, CEO Elon Musk’s decision to reduce the amount of time that he spends working for the government is a positive development, the investment bank believes.
And over the long term, the company’s robot and its entrance into the self-driving truck market could boost its performance, Cantor contended.
Tesla’s Challenges
Among the challenges that spurred Cantor to cut its price target on TSLA are tariffs which will negatively impact the demand for its EVs, along with Musk’s controversial political views.
Finally, foreign consumers may shy away from buying Tesla’s EVs due to their hostility towards the Trump administration, Cantor warned.
The Recent Price Action of TSLA Stock
In the last month, the shares have dropped 6%, while they have retreated 38% in the last three months.
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This article is originally published at Insider Monkey.
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