On Wednesday, electric car manufacturers$Tesla (TSLA.US)$A report showing a sharp year-on-year decline in revenue, delivery volume, profit margin, and earnings per share for the first quarter was announced, but it provided an update on cheaper models and autonomous taxi platforms. Wall Street analysts discussed this.

On Tesla's earnings call, Musk said the company is now an artificial intelligence robotics company. He said, “If you don't value us, then it's impossible to get the right answers to the questions you ask. If anyone doesn't believe Tesla can solve the problem of autonomous driving, they shouldn't be an investor in the company.” This remark left analysts with a lot to digest.

HSBC said Tesla's profit and cash flow performance in the first quarter was weak, but expectations for the next generation of cars still exist. Analyst Michael Tyndall emphasized: “The evolution of the new generation of cars does not seem as aggressive as previously stated, but there is news that more models will be introduced, although they will use the existing production footprint and combine new and existing technology.”

UBS reaffirmed Tesla's “neutral” rating, but lowered its price target from $160 to $147 because the short-term outlook was uncertain as the company switched to artificial intelligence. Analyst Joseph Spak notes, “As a new, lower cost product is about to be launched, the bearish talk about Tesla has disappeared.” He added, “While we expect the company's future prospects to improve compared to the first quarter of 2024, we believe the current product lineup growth is limited, and the likely impact of these new cars is unclear.” According to Spak and his team, there are still a few unsolved mysteries about this new low-cost car.

Wedbush Securities maintained Tesla's “outperforming the market” rating, but lowered the target price to $275. Analyst Dan Ives said Musk and his company made the right decision to launch a new concept car he called Model 2.5, although he warned that the road could be rough and rough. “Tesla's autonomous driving and FSD aspects are a critical long-term strategy. Although promising, it also poses a series of regulatory and technical challenges that must be gradually addressed over the next few years to achieve Musk's strategic vision,” he said.

Bank of America upgraded Tesla's rating to “buy,” and pointed out that the company's first-quarter results were better than the bank's expectations, and that this performance removed the negative catalyst. The bank indicated that FSD may be licensed to one of the two major original equipment manufacturers as early as the end of this year, which is a highlight.

Morgan Stanley analyst Adam Jonas said that although Musk expects deliveries in 2024 and beyond to increase compared to last year, he believes that sales growth throughout the year may require further price cuts, market help, and the seamless launch of new cheaper models from now on.

As of press release on Wednesday, Tesla was up nearly 14%, but in the two weeks before the earnings report was released, the stock fell 15%. Tesla's highest share price in 52 weeks was $299.29, and once fell to a low of $138.80 on Monday.

Editor/Jeffrey