Citizens reiterated a Market Perform rating on Tesla Inc. (NASDAQ: TSLA) shares on Friday, citing the company's recent approvals for autonomous vehicle operations in Nevada while maintaining valuation concerns.
Analyst Andrew Boone kept Tesla at a neutral rating with a stock price target unchanged, according to a note published late Thursday. The rating follows Nevada's Transportation Authority unanimous approval of commercial robotaxi permits for Tesla, Waymo and Uber Technologies. Tesla received permission to deploy up to 5,000 vehicles in the state, while Waymo and Uber were each granted 1,000-vehicle permits through their respective partners.
Citizens also highlighted Uber's expanding autonomous operations, noting the launch of its first European autonomous service in Zagreb, Croatia, in partnership with Pony.ai and local fleet operator Verne. The brokerage expects commercial supply of autonomous vehicles on Uber's platform to accelerate in the fourth quarter of 2026 and continue through 2027.
Tesla's stock was trading at $362.86 on Friday, giving the company a market capitalization of $1.14 trillion and a trailing price-to-earnings ratio of 336.4. InvestingPro data listed Tesla as among the most overvalued stocks relative to fair value estimates.
GLJ Research maintained a Sell rating on Tesla, citing concerns over the company's robotaxi strategy, second-quarter operating margin of 1.4% and negative free cash flow of $1.1 billion. TD Cowen, however, kept its Buy rating, emphasizing Tesla's leadership in autonomous vehicle technology.
Separately, Tesla faces a recall in China involving nearly 3 million vehicles due to safety issues with emergency door release handles. The recall, scheduled to begin September 25, affects Model 3, Model Y, Model S and Model X vehicles. Tesla plans to address the issue with warning labels and an over-the-air update to lower windows after collisions.
Tesla also announced a partnership with Einride to deploy 500 Tesla Semi trucks for Amazon across North America, expanding its commercial vehicle presence beyond passenger cars.
