Group 1: Tesla's Door Mechanism Redesign and Safety Investigations - Tesla is exploring a redesign to integrate electronic and manual door-release mechanisms for improved intuitiveness, especially in panic situations [1] - The U.S. National Highway Traffic Safety Administration (NHTSA) is investigating approximately 174,000 Model Y vehicles from the 2021 model year due to reports of electronic door handle failures [2][9] - NHTSA has received over 140 consumer complaints since 2018 regarding Tesla doors becoming stuck, failing to open, or malfunctioning [4][9] Group 2: Repair and Recall Information - The issue with electronic door locks is linked to insufficient voltage, often resolved by replacing the low-voltage battery, although no warnings were reported prior to failures [3] - In 2023, Tesla recalled over 120,000 Model S and Model X vehicles in the U.S. due to the risk of doors unlocking and opening during a crash [5] Group 3: Competitive Landscape and Market Performance - Ford is recalling 101,944 Taurus sedans due to a defect that may cause the B-pillar trim to detach, posing a hazard [6] - Stellantis is recalling around 164,000 Jeep vehicles over a similar issue with door trim detachment [7] - Tesla has underperformed compared to the Zacks Automotive – Domestic industry, gaining 3.2% year-to-date versus the industry's 4.6% growth [8] Group 4: Valuation and Earnings Estimates - Tesla appears overvalued with a forward price/sales ratio of 12.82, significantly higher than the industry's 3.18 [11] - The Zacks Consensus Estimate for Tesla's EPS has decreased by 11 cents and 19 cents for 2025 and 2026, respectively, over the past 60 days [13]

Core Insights - Tesla has launched a small self-driving taxi service in Austin, TX, marking the first instance of its autonomous vehicles transporting paying passengers without a human driver present [1][9] - The pilot program involves around 10 Tesla vehicles operating in a limited area, with a passenger in the front seat acting as a safety monitor [2][9] - Texas has enacted new legislation requiring permits for driverless cars, effective September 1, 2025, indicating a cautious approach from state leaders towards the autonomous vehicle industry [3][9] Industry Context - Other companies, such as Amazon's Zoox and Alphabet's Waymo, are also advancing their robotaxi services, with Zoox opening a dedicated manufacturing facility and Waymo planning to restart testing in New York City [5][6] - Waymo currently operates the only commercial robotaxi service in the U.S., with a fleet of over 1,500 vehicles providing more than 250,000 rides weekly in major cities [6] Financial Performance - Tesla's stock has underperformed compared to the Zacks Automotive – Domestic industry, with shares down 20.2% year-to-date, while the industry has declined by 19.6% [7] - The Zacks Consensus Estimate for Tesla's 2025 EPS has decreased by a penny in the past 30 days, while the estimate for 2026 EPS has increased by a penny in the past week [10] Valuation Metrics - Tesla appears overvalued based on its price/sales ratio, trading at a forward sales multiple of 9.88, significantly higher than the industry's 2.60 [12]

Image Source: Zacks Investment Research Which brings us to the Zacks Rank. Harley-Davidson currently sits at a Zacks Rank #5 (Strong Sell), and that's not by accident. Over the past 60 days, we've seen multiple downward revisions to EPS estimates for both this quarter and the full year. That's a bearish signal we can't ignore. Analysts now expect negative earnings growth for the full year, a stark reversal from earlier optimism fueled by pandemic-era demand spikes. Current year Zacks Consensus Estimates are ...