Piper Sandler Cuts Tesla Price Target to $400 After Q1 Delivery Miss, Margin Drop, and Model 2 Delay

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Published Apr 16, 2025, 07:09 PM

Piper Sandler has lowered its price target for Tesla Inc. shares to $400 from $450 following the company's first-quarter delivery results, which fell short of expectations. Tesla reported 337,000 vehicle deliveries in Q1, missing the estimated 378,000, contributing to pressure on gross margins that are expected to reach multi-year lows. Analysts at Piper Sandler anticipate a subdued near-term outlook for Tesla, citing ongoing discounting strategies by management to address brand weakness, which have depressed automotive gross margins excluding regulatory credits to 12.3% compared to 16.7% a year earlier. The firm also highlighted limited near-term delivery growth prospects due to the absence of specifications or pricing for Tesla's upcoming "Model 2" vehicle. Despite the lowered price target and cautious short-term view, Piper Sandler maintains an overweight rating on Tesla, noting that long-term catalysts such as future vehicle platforms and the company's robotaxi ambitions remain in play. The upcoming earnings report is expected to be a "non-event, at best," unless Tesla provides significant updates on these fronts.

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Herbert Ong

@herbertong

NEWS: Piper Sandler has trimmed its price target on $TSLA shares to $400 from $450 The firm’s analysts believe the upcoming print will be a “non-event, at best,” unless Tesla provides specific updates on future vehicle platforms or its robotaxi ambitions. The downward revision

Sawyer Merritt

@SawyerMerritt

NEWS: Piper Sandler has cut its $TSLA price target to $400 (from $450). The firm’s analysts believe the upcoming earnings print will be a “non-event, at best,” unless Tesla provides specific updates on future vehicle platforms or its robo-taxi ambitions. “Gross margin is