
Tesla’s second-quarter earnings, due out after the market closes on Tuesday, are highly anticipated by investors. The electric vehicle market’s increased competition underscores the importance of strong performance for Tesla. Analysts predict earnings of 62 cents per share on revenue of $24.77 billion for the quarter.
While the revenue estimate suggests a slight uptick from the first quarter’s $21.30 billion, the earnings forecast is 30% lower year-over-year. Tesla reported adjusted earnings of 45 cents per share on a 9% revenue decline in the first quarter. The company’s June delivery numbers, which surpassed expectations, initially boosted the stock price. However, the announcement of a delayed Robotaxi launch led to a sell-off.
With the Robotaxi delay, investors are now looking to the upcoming earnings report for a significant catalyst for the stock. Guggenheim analyst Ronald Jewsikow is bearish on Tesla, issuing a sell rating with a price target of $134, indicating a potential 46% drop from current levels. He expressed concerns over the delayed Robotaxi prototype and testing, questioning Tesla’s future in autonomous vehicles.
Other analysts share similar views. Barclays analyst Dan Levy cautions about potential stock reversion if the second-quarter results disappoint. Evercore’s Chris McNally also sees downside risk for Tesla, citing flat demand and production numbers. Despite the hype surrounding Tesla’s autopilot and AI technology, analysts remain cautious about the company’s near-term outlook.
Wells Fargo analyst Colin Langan highlighted additional challenges for Tesla, including new tariffs on electric vehicle batteries and uncertainty surrounding the U.S. presidential election. Langan believes that investors have not fully grasped the impact of these factors on Tesla’s costs and profitability.
On the optimistic side, Morgan Stanley’s Adam Jonas views Tesla as more than just a car company, recognizing its potential in AI and energy storage. Jonas maintains an overweight rating on Tesla shares with a price target of $310, suggesting a 23% upside from current levels. He believes that Tesla’s position in the AI and energy sectors will drive future growth.
Overall, the sentiment surrounding Tesla’s upcoming earnings report is mixed, with analysts divided on the company’s prospects. The stock’s performance in the coming weeks will likely hinge on the clarity provided by the earnings report and management’s guidance for the future. Investors will be closely monitoring Tesla’s results and outlook for any signs of strength or weakness in the company’s core business.