Investors are eagerly awaiting Tesla’s second-quarter results, which are set to be released after the market closes on Tuesday. The electric vehicle market has become increasingly competitive, making it crucial for Tesla to deliver strong numbers. Analysts are expecting Tesla to report earnings of 62 cents per share on revenue of $24.77 billion for the quarter.
While the revenue estimate represents a slight increase from the first quarter’s $21.30 billion, the earnings forecast is 30% lower than the previous year. In the first quarter, Tesla reported adjusted earnings of 45 cents per share on a 9% decline in revenue. The company’s second-quarter delivery numbers, released in June, exceeded expectations and initially boosted the stock price. However, the announcement of a delay in the debut of its Robotaxi led to a sell-off.
With the delay of the Robotaxi, investors are now looking to the upcoming earnings report as a significant catalyst for the stock. Guggenheim analyst Ronald Jewsikow is bearish on Tesla, giving it a sell rating with a price target of $134, implying a potential 46% drop from current levels. He raised concerns about the delay in the Robotaxi prototype and testing, casting doubt on Tesla’s future in autonomous vehicles.
Other analysts share similar sentiments, with Barclays analyst Dan Levy warning of 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 around Tesla’s autopilot and AI technology, analysts are cautious about the company’s near-term outlook.
Wells Fargo analyst Colin Langan highlighted additional headwinds for Tesla, including new tariffs on electric vehicle batteries and the uncertainty surrounding the U.S. presidential election. Langan believes that investors have not fully considered the impact of these factors on Tesla’s costs and profitability.
On the bullish side, Morgan Stanley’s Adam Jonas sees Tesla as more than just a car company, recognizing its potential in AI and energy storage. Jonas has an overweight rating on Tesla shares and 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 depend 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.