After quarterly results met expectations, China Merchants Securities
International cut Tesla's 2026–2028 attributable net profit forecasts by 41%,
44% and 53%, citing higher R&D and S&M expense ratios and a slower Cybercab
ramp. It lowered its sum-of-parts price target from $441 to $354 (down 19.7%)
and maintained a Neutral rating. The firm remains constructive on long-term FSD,
Robotaxi and Optimus upside but says near-term higher R&D and capex will delay
scaled profitability.
