Guggenheim Downgrades Tesla to Buy, PT Lowered to $90 from $92

Guggenheim Downgrades Tesla to Buy, PT Lowered to $90 from $92

Guggenheim Securities has downgraded Tesla (NASDAQ: TSLA) to a "Buy" rating, reducing its price target (PT) from $92 to $90. The downgrade comes amidst a period of market volatility and a series of disappointing earnings reports for the electric vehicle (EV) maker. Tesla's stock has experienced significant declines in 2025, with a year-to-date loss of 18.66% and a drop of nearly 36% from its all-time high in December 2024 [1].

The downgrade reflects Guggenheim's concerns about Tesla's financial performance and the broader market conditions. The company's core EV business has seen sales and margins decline, while the autonomous driving (FSD) and robotics endeavors have yet to deliver substantial growth. Additionally, the ongoing spat with the Trump administration and regulatory challenges in key markets have added to the uncertainty surrounding Tesla's future prospects [1].

Despite the downgrade, Guggenheim remains bullish on Tesla's long-term growth potential. The firm believes that the launch of the Robotaxi and the company's push into AI and autonomous driving could be game-changers, but these initiatives may take time to materialize and deliver meaningful results. The analyst also notes that Tesla's fundamentals remain choppy, and the stock is increasingly disconnected from its underlying value [1].

The institutional investor landscape has also shifted, with several large firms adjusting their holdings. Goldman Sachs Group Inc., for instance, significantly increased its stake in Tesla, acquiring an additional 20,291,139 shares in the first quarter of 2025 [2]. However, the overall sentiment among institutional investors has been mixed, with some large firms reducing their holdings while others have increased their positions.

In conclusion, Guggenheim's downgrade to a "Buy" rating with a reduced price target of $90 reflects the analyst's concerns about Tesla's short-term performance and market conditions. However, the firm remains optimistic about the company's long-term growth prospects and the potential impact of the Robotaxi launch and other innovative initiatives.

References:
[1] https://247wallst.com/investing/2025/08/05/wall-street-price-prediction-teslas-share-price-forecast-for-2025/
[2] https://www.marketbeat.com/instant-alerts/filing-goldman-sachs-group-inc-acquires-20291139-shares-of-tesla-inc-nasdaqtsla-2025-08-06/