Citi believes Tesla's robotaxi event removes an overhang on shares of Uber Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.
From the hotly-debated high-flier Tesla (TSLA), Wall Street's newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with "Charged," a weekly recap of the top stories and expert calls in the sector.
ROBOTAXI EVENT: Shares of Tesla were under pressure on Friday following the company's unveil of its highly anticipated "Cybercab" on Thursday night.
Commenting on the event, Wells Fargo said it was mostly "razzle-dazzle" with "little substance." CEO Elon Musk expects unsupervised testing to begin in 2025 and targeted operating costs of 30c-40c per mile, but the company provided few details, the firm told investors in a research note. Wells added that Tesla did not outline the regulatory timeline reiterated its vision-only technology. "The event succeeded in fostering excitement but offered little substance," the firm writes. Wells expects company fundamentals will come back in focus. The firm reiterated an Underweight rating on the shares with a $120 price target.
Voicing a similar sentiment, Goldman Sachs said the company demonstrated "very strong progress" with the Optimus humanoid robot, and the Cybercab looked attractive, but the lack of data shared on full self-driving performance, relatively limited details on the robotaxi business plan, and absence of a lower-cost consumer vehicle unveil "may be disappointing for some market participants and lead the stock to pull back after the recent run." The firm keeps a Neutral rating on Tesla with a $230 price target after attending the company's robotaxi event.
Meanwhile, Piper Sandler said that while Tesla's robotaxi event "was amazing," it is probably not enough to sustain the stock's recent momentum. The "most trading-oriented firms will be underwhelmed by the robotaxi unveiling," the firm tells investors in a research note. Piper would not be surprised if the stock sells off in the coming weeks, "as pre-event momentum fizzles." While "true believers," which include Piper, "have every reason to feel energized after the unveiling," it is difficult to make upward revisions to 2025 and 2026 estimates following the event, the firm contends. Piper believes many investors had expected this event to "deliver something more concrete." It keeps an Overweight rating on the shares with a $310 price target.
UBER OVERHANG: Citi believes Tesla's robotaxi event removed an overhang on shares of Uber Technologies (UBER). The event clarified Tesla's vision and timeline for its robotaxi, but it remains early days, and Citi emerged incrementally positive on Uber shares as a result. The firm continues to believe Uber is well positioned to benefit from autocoups vehicles given the size and scale of its driver supply and active platform globally. Citi reiterates a Buy rating on Uber with a $98 price target.
BMO Capital kept an Outperform rating and $92 price target on Uber after Tesla's "ambitious" Robotaxi event. Tesla CEO Elon Musk hinted that each vehicle would cost below $30K, but "scale matters" in Rideshare, and BMO believes that Tesla will need to spend about $100B to match Uber's driver supply levels. Musk did not discuss unit economics or plans to scale the Cybercab, and the firm contends that given Uber's global presence, it expects the company to remain the "primary distribution partner" with autonomous vehicles.
Click here to check out Tesla's recent Media Buzz Sentiment as measured by TipRanks.
BUY EVGO: UBS upgraded EVgo (EVGO) to Buy from Neutral with a price target of $8.50, up from $4. The $1.05B Department of Energy loan announced the prior week provides increased visibility to EVgo funding new stall deployments beyond 2025, at a potentially accelerated pace relative to current run-rate expectations, the firm tells investors in a research note. In addition, since UBS's July initiation, odds of a Republican sweep in November have decreased, further "derisking" the company's outlook, contends UBS. It sees upcoming catalysts for the stock from announcement of financial close on the DOE loan, updated financial guidance including an increased growth outlook, and reaching adjusted EBITDA breakeven in the second half of 2025.
ON THE SIDELINES: Wells Fargo initiated coverage of Shoals Technologies (SHLS) with an Equal Weight rating and $46 price target. While the company is entering new markets, which could accelerate growth over the long term, the firm says that in the near term, there is risk to 2025 consensus estimates. Wells says investors are likely waiting for clear signs of traction in Shoals' new business segments, such as increased bookings, before ascribing significant growth to the stock.
TURNAROUND STORY: Jefferies initiated coverage of Sunnova Energy (NOVA) with a Buy rating and $15 price target. Sunnova "could be one of the best turnaround stories in our clean coverage," says the firm. After a challenging 2023, the $850M of estimated cash generation should allow Sunnova to reinforce its balance sheet and "dispel the naysayers," while current trading levels imply a disconnect, leaving Jeffeies convinced the market underestimates Sunnova's turnaround.
