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Tesla (NASDAQ:TSLA) is in the spotlight on Thursday after its Q2 earnings report featured slowing revenue and deliveries trends, along with more promises of a “more affordable” EV model and autonomy dominance.
Wedbush Securities analyst Dan Ives said the firm believes that the upcoming quarters will be critical for Tesla (NASDAQ:TSLA) on the autonomous front, as the company aims to have autonomous ride hailing in half the US population by the end of 2025, including unsupervised FSD to be available for personal use in some US cities by late 2025. He also noted that Elon Musk hinted at gaining regulatory approval in the Netherlands for its FSD technology, which would open a path to FSD compliance in the European Union over the coming years. Wedbush has an Outperform rating on Tesla (TSLA) and a price target of $500 on its view the autonomous opportunity is worth $1 trillion alone.
Wells Fargo reiterated its Underweight rating on Tesla. Analyst Colin Langan and his team remain cautious that scaling the robotaxi business and Optimus will take longer than expected, which raises risks as the core business weakens. Langan noted that Tesla (TSLA) did not provide new delivery guidance and warned of added pressure from tariffs, the EV tax credit being pulled, and ramifications from the Big Beautiful Bill.
Morgan Stanley analyst Adam Jonas wrote that Tesla (TSLA) is crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs, and investing in new initiatives that may not make margins for years. “With the company highlighting the headwinds facing the next few quarters, we believe consensus is likely revised lower. Our updated FY25 EPS is 14% lower vs. prior forecasts and FY26 is 7% lower, primarily driven by lower deliveries and higher operating expenses,” he highlighted.
Hargreaves Lansdown analyst Matt Britzman
“Tesla is in a very small cohort of companies with enough growth potential that investors are, for now at least, willing to look past weakening core financials. Last night’s comments confirmed many fears around tariffs, rising costs, tougher margins, and struggling cash flows. But with that now firmly built in as the base case, the AI story can take back the wheel.”
Seeking Alpha analyst Jonathan Weber (Sell rating on Tesla)
“While Tesla has potential in robotics and robotaxis, it remains to be seen when, if ever, these ventures start generating profits — at least in the past, Tesla has failed to deliver on its ambitious goals. At the same time, the headwinds and problems are very clear and impact Tesla right now — margins are falling, revenues are falling, profits, and especially cash flows are getting worse, with additional headwinds from the OBBB likely coming in the next couple of quarters.”
Shares of Tesla (TSLA) were down 6.0% in premarket trading to $312.80.