Deutsche Bank lowered its price target on Tesla to $420 from $465 while maintaining a buy rating. The bank cited slower-than-expected progress on robotaxis and the Optimus humanoid robot as key reasons for the reduction. Tesla shares have fallen 16% over two sessions following last week's earnings report.
Deutsche Bank lowered its price target on Tesla to $420 from $465 while maintaining a buy rating. The bank cited slower-than-expected progress on robotaxis and the Optimus humanoid robot as key reasons for the reduction. Tesla shares have fallen 16% over two sessions following last week's earnings report.
Deutsche Bank cut its Tesla price target 10% to $420 from $465, citing slower-than-expected progress on robotaxis and the Optimus humanoid robot.
"Slower-than-expected progress in robotaxis and Optimus along with the risk that cash burn rises before the next major milestone," Deutsche Bank analysts wrote in a note, explaining the reduction.
The new target of $420 represents a roughly 10% cut from the prior $465 target. Deutsche Bank maintained its buy rating on the stock, suggesting the firm still sees long-term value despite near-term headwinds. Tesla reported negative free cash flow in its most recent quarter, adding to concerns about capital consumption before the next major product catalyst.
The downgrade comes as Tesla faces mounting questions about its growth trajectory. The stock has lost 16% in two sessions since last week's earnings, erasing billions in market value. Multiple banks have also trimmed their price targets on the electric-vehicle maker, reflecting a broader recalibration of expectations. The company's next major catalyst — the robotaxi unveiling or a production update on Optimus — has no confirmed date, leaving investors in a waiting pattern. For holders, the target cut reinforces the view that Tesla's valuation is increasingly tied to unproven future businesses rather than its core automotive operations.
