GLJ Research cuts Tesla stock price target on robotaxi concerns

GLJ Research has lowered its rating on Tesla Inc. (NASDAQ:TSLA) stock to Sell and maintained a $24.86 price target, citing concerns over the company's robotaxi plans. The research firm noted Tesla's year-to-date decline of 24.55% compared to the S&P 500's gain of 13.14%. GLJ Research highlighted Tesla's second quarter operating margin of 1.4%, negative free cash flow of $1.1 billion, and a declining energy gross margin to 20.4%.

The firm reported that Tesla's Full Self-Driving (FSD) software on version 14 with Hardware 4 disengages every 40 miles, with only 865 vehicles in the tracked fleet and 18 active in the past week. NHTSA filings show 22 collisions involving Tesla vehicles with safety monitors in the past year. The Cybercab robotaxi service, set to launch in Austin, will operate a two-seat vehicle without a steering wheel.

GLJ Research expects Tesla shares to decline materially over the second half of 2026, targeting sub-$200 per share. Analysts have price targets ranging from $125 to $600 for Tesla stock. Tesla's P/E ratio stands at 315.62. Other news includes Einride's partnership with Tesla to deploy 500 Tesla Semi trucks in North America for Amazon, and TD Cowen maintaining a Buy rating on Tesla, citing its position in autonomous vehicles.

CEO compensation in the S&P 500 reached a record $22.8 million in 2025, up 21% from the previous year, but Tesla CEO Elon Musk's compensation is excluded. Vehicle registrations in EU markets rose 5.2% year-over-year in July, with the UK and France showing the highest growth.