Investment Rating - The report assigns an "Underweight" rating to Tesla Inc with a price target of 130.00forDecember2025[4][10].CoreInsights−ThereporthighlightsasubstantialriskofmultiplecompressionforTeslasharesfollowingasignificantrally,drivenbyinvestorenthusiasmfortherecentRobotaxiDayevent,whichdidnotmeetexpectationsregardingvehiclesales,earnings,orcashflow[1][2].−Despitea6896.77 billion, with an adjusted EBITDA of 13.56billionandanadjustednetincomeof10.88 billion, resulting in a net margin of 11.2% [8]. - The adjusted EPS for FY 2024 is estimated at 2.25,withadeclineinfreecashflowexpectedtodropby493.9 billion to 1.9billion[2][5].ValuationMethodology−Thepricetargetof130.00 is based on a 50/50 blend of discounted cash flow (DCF) analysis and multiples-based analysis for 2026 estimates [10][14]. - The DCF analysis suggests a value per share of 115,whilethemultiples−basedanalysisindicatesavalueof144 [31][19]. Market Expectations - The report notes that investor expectations were overly optimistic, particularly regarding the rollout of Tesla's robotaxi program, which is now seen as a longer-term prospect rather than an immediate opportunity [1][11]. - The anticipated launch of the Cybercab and Robovan has raised questions about the economic viability of selling these vehicles externally, which may not align with previous expectations of Tesla operating a dedicated robotaxi fleet [11][12].
