CMB International Securities lowers Tesla's target price to $354, maintains neutral rating

China Merchants Securities International released a report stating that it has lowered its forecast for Tesla's (TSLA.US) net profit attributable to shareholders for 2026 to 2028 by 41%, 44%, and 53% respectively, reflecting increased R&D and sales management expense ratios, as well as a slower ramp-up of Cybercab production. The target price, based on sum-of-the-parts valuation, has been reduced from the original $441 to $354, a decrease of 19.7%, while maintaining a "Neutral" rating. The firm remains optimistic about the long-term growth potential of FSD, Robotaxi, and Optimus, but notes that in the short term, increased R&D and capital expenditures mean scaled profitability has yet to be realized.