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Analyst Downgrades: Tesla, Avago, Philip Morris, Futu, Gulfport Energy
ByAinvest
Friday, May 30, 2025 12:37 am ET1min read
Tesla (TSLA) and several other stocks have been downgraded by Seeking Alpha analysts. Tesla was downgraded from Hold to Sell by A.J. Button, citing the company's high price and lack of profitability. AVGO, PM, FUTU, and GPOR were also downgraded by other analysts.
Tesla (TSLA) and several other stocks have been downgraded by Seeking Alpha analysts, reflecting growing concerns about valuation and profitability. Tesla was downgraded from Hold to Sell by A.J. Button, who cited the company's high price and lack of profitability. The analyst also noted that Tesla's stock has become disconnected from its underlying fundamentals, with a price-to-earnings (P/E) ratio of 188 times for 2025 [1].Gary Black, the Managing Partner at The Future Fund LLC, echoed these concerns, selling his remaining Tesla shares after holding a position since 2021. Black cited a disconnect between Tesla’s valuation and its fundamentals, including a 40% year-to-date (YTD) decline in earnings estimates and weak YTD deliveries. He also expressed concern about the potential downside risks associated with Tesla’s robotaxi tests in Austin and the upcoming release of a more affordable vehicle in July [2].
Other analysts have also downgraded Tesla, with ARK Investment's Cathie Wood selling off over $5.6 million in Tesla shares despite CEO Elon Musk's commitment to the brand. Additionally, company insiders, including Musk's brother Kimbal Musk, have sold off more than $31 million in Tesla shares [2].
The downgrades come as Tesla prepares for the launch of its Robotaxi in Austin, with the EV giant reportedly targeting a June 12 date. Despite these developments, Tesla scores well on Momentum, Growth, and Quality metrics but offers poor Value, according to Benzinga [2].
References:
[1] https://ca.investing.com/news/stock-market-news/tesla-stock-sold-by-longtime-bull-gary-black-on-valuation-concerns-93CH-4040355
[2] https://www.benzinga.com/tech/25/05/45665076/gary-blacks-future-fund-sells-remaining-tesla-stock-reitrates-310-price-target-tslas-valuation-has-become-disconnected
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