Overview
- New lead analyst Andrew Percoco downgraded Tesla to Equal Weight with a $425 price target, cutting the core auto valuation to $55 per share and modeling 1.6 million deliveries in 2026.
- Morgan Stanley assigns $145 per share to Tesla’s Full Self-Driving and network services and $60 to Optimus with a 50% probability adjustment, saying much of the AI optionality is priced in.
- Rivian was lowered to Underweight with a $12 target on R2 launch risks, residual-value pressure from R1 lease returns, and heavy cash burn, with a Volkswagen funding tranche expected after winter testing.
- Lucid was cut to Underweight with a $10 target as the bank projects continued losses and estimates roughly $2 billion in equity needs by the second half of 2026.
- General Motors was upgraded to Buy with a $90 target as the removal of the $7,500 federal EV credit and slower EV adoption create sector headwinds for pure-play EV makers, with Morgan Stanley warning of choppy trading over the next year.