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High-profile financial institutions like RBC, Deutsche Bank, Bank of America, Goldman Sachs, and others have upgraded Tesla’s price targets, reflecting confidence at a broad institutional level. For instance, Bank of America projects a target of $265, while Goldman Sachs is more optimistic at $330. Even bearish voices like Gordon Johnson have little credibility left after underestimating Tesla’s earnings.
Surprising Earnings and Margin Improvements
Tesla’s quarterly results broke many expectations. Notably, cost reductions played a pivotal role, with Tesla’s margins improving significantly despite a drop in average selling prices. This indicates efficient scaling and cost management, even as vehicle prices stabilize or fall.