Key Takeaways
- Tesla is scheduled to report second-quarter earnings after the closing bell on Wednesday, after deliveries fell short of estimates earlier this month.
- Revenue and profits are each expected to decline compared to the same time a year ago.
- Analysts are divided on Tesla stock, with an average price target suggesting most analysts expect shares to decline.
Tesla (TSLA) is slated to report second-quarter results after the market closes on Wednesday, after deliveries fell short of estimates earlier this month.
Tesla is expected to report a 10% decline in revenue from the same time a year ago to $22.9 billion, while adjusted earnings per share are projected to fall nearly 20% year-over-year to $0.43, according to estimates compiled by Visible Alpha.
Ahead of the EV maker’s results, bearish UBS analysts recently said that they still think Tesla is “fundamentally overvalued,” holding a $215 price target, well below Friday level of about $327. The analysts said they think the stock’s movement could be affected more by CEO Elon Musk’s comments on the quarterly earnings call about its recently launched robotaxi program and other projects than by Tesla’s actual results.
JPMorgan analysts, even less optimistic with a Street-low $115 price target, said they “continue to see risk to the full year outlook and valuation” as the EV maker’s deliveries have continued to fall. Wedbush analysts, however, with their Street-high $500 price target, were more bullish as they said deliveries didn’t fall quite as much as some had feared, noting that Tesla returned to sales growth in China for the first time in eight months in June.
Earlier this month, William Blair analysts downgraded Tesla stock to “market perform” from “outperform” as they said investors may be “growing tired of the distraction” of Musk’s involvement in politics. They also said the Trump administration’s ending of EV tax credits and fines that led other automakers to buy clean energy credits from Tesla could impact demand for Tesla’s vehicles and hurt its profit margins.
Of the 17 brokers tracked by Visible Alpha, eight call Tesla a “buy,” compared to five “hold,” and four “sell” ratings. Their mean price target is just shy of $300, about 9% below Friday’s level. The shares have lost nearly a fifth of their value since the start of the year, making it the worst-performing member of the Magnificent 7 stocks in 2025.