According to a recent report by a financial institution, Tesla (TSLA, Financial) posted first-quarter results that fell short of market expectations. However, CEO Elon Musk plans to increase his focus on Tesla, maintaining new car cycle guidance and progressing in the artificial intelligence (AI) sector, potentially contributing to growth next year. The target price remains at $300 with an "outperform" rating.
Musk intends to step back from his government efficiency role by May to dedicate more energy to company governance, addressing concerns about his involvement with Tesla. The company continues to produce low-cost models this year and aims to mass-produce Robotaxi next year, boosting investor confidence.
The AI business shows active progress, with expectations of significant contributions to Tesla's growth next year. Musk plans to launch a paid autonomous ride-sharing service with 10 to 20 Model Y vehicles in June. He predicts millions of self-driving cars by the latter half of next year and sees Robotaxi as a significant driver of growth.
The company is also confident in achieving an annual production of one million Optimus robots by 2029-2030. Tesla maintains its non-GAAP net income forecasts at $11.653 billion and $15.255 billion for this year and next.
