After Tesla CEO Elon Musk unveiled the promised second part of his "master plan" last night, which includes tackling solar and storage, commercial transport, fully autonomous driving, and car-sharing, UBS analyst Colin Langan questions whether the plan will surprise most investors, many of whom already have high expectations for the company's future. Langan said he was surprised by the announcement of an eventual heavy duty truck and bus, but questions if the company can handle varying platforms when it is currently having issues with only two models. The analyst keeps a Sell rating and $160 price target on Tesla shares.

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Deutsche Bank analyst Emmanuel Rosner downgraded Tesla to Hold from Buy with a price target of $123, down from $189. The analyst cites the "high likelihood" of Model 2 push-out and the company's change of strategic priority to Robotaxi for the downgrade. Deutsche's Buy rating was predicated on Tesla's next-generation vehicle priced at $25,000 coming late next year, which would allow the company to reaccelerate volume, margins and free cash flow, and potentially come to dominate the Western electric vehicle market, the analyst tells investors in a research note. However, pushing out the Model 2 will create "significant" earnings and free cash flow pressure on 2026 and beyond estimates, and make the future of the company tied to Tesla "cracking the code on full driverless autonomy," which represents a "significant technological, regulatory and operational challenge," says Deutsche Bank. The firm views Tesla's shift to Robotaxi as "thesis-changing," and worries the stock will need to undergo a "potentially painful transition in ownership base," with investors previously focused on electric vehicle volumes and cost advantages potentially "throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizon."

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