Featured News Headlines
- 1 Tesla Stock Price Target Raised Despite Delivery Challenges in Q2
- 1.1 Bank of America Raises Price Target Amid Delivery Challenges
- 1.2 Regulatory Credits and Trump’s Impact Under the Microscope
- 1.3 Guidance and Earnings Call Expectations
- 1.4 Cantor Fitzgerald Foresees Revised Guidance and Robotaxi Expansion
- 1.5 Market Sentiment and Stock Performance
- 1.6 Technical Metrics and Investor Tools
Tesla Stock Price Target Raised Despite Delivery Challenges in Q2
Tesla Stock Outlook – Tesla’s second-quarter earnings and revenue report is set to release after the stock market closes on Wednesday. With global vehicle sales down more than 13% in Q2, analysts have been lowering their quarterly profit expectations, stirring mixed sentiment among investors and experts alike.
Bank of America Raises Price Target Amid Delivery Challenges
On Monday, Bank of America analysts boosted Tesla’s price target to $341 from $305, while cautioning that Q2 earnings are “likely to be challenged due to tariffs” and “disappointing deliveries.” Despite these headwinds, the firm highlighted a bright spot: Tesla’s new robotaxi ride-hailing service launch in Austin, Texas. This development strengthens confidence in Tesla’s ambitious plan to deliver unsupervised full self-driving (FSD) by the end of 2025, a key milestone investors eagerly await.
Regulatory Credits and Trump’s Impact Under the Microscope
Piper Sandler analyst Alex Potter offered a nuanced take on the regulatory credit cuts initiated by former President Donald Trump. Tesla earned about $3.5 billion in regulatory credits last year, nearly equal to its projected free cash flow for 2024. While the U.S. government is phasing out financial support for EVs and batteries, Potter emphasized Tesla will still secure around $3 billion in credits this year and $2.3 billion in 2026. He noted this represents a “modest reduction” and suggested no drastic revisions to earnings forecasts are necessary yet.
Guidance and Earnings Call Expectations
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, stated that the lead-up to this earnings report is “dramatically different” from three months ago. Ives expects Tesla to address the loss of EV tax credits under the recent Beltway Bill, which will pose a headwind for Tesla and its competitors. He anticipates directional guidance on deliveries, especially a rebound in the second half of the year driven by improvements in China and the Model Y refresh acting as a catalyst.
AI initiatives will also be front and center. Investors will be keenly listening for any updates on Tesla’s investments in CEO Elon Musk’s xAI company, highlighting the growing importance of artificial intelligence in Tesla’s future roadmap.
Cantor Fitzgerald Foresees Revised Guidance and Robotaxi Expansion
Analyst Andres Sheppard from Cantor Fitzgerald expects Tesla to revise down both automotive and energy storage guidance for Q2, influenced by ongoing trade policy and macroeconomic uncertainties. Sheppard also mentioned updates anticipated during the call about the expansion of robotaxis in Austin, with plans for rollouts in California and Arizona, as well as the timeline for introducing more affordable Tesla vehicles.
Market Sentiment and Stock Performance
Ahead of earnings, Tesla’s stock holds an average price target of $313.66 with a “hold” rating per FactSet. Analyst consensus anticipates a 25% decline in EPS to 39 cents and a roughly 13% drop in revenue to $22.19 billion, although some forecasts expect revenue slightly below $22 billion.
Tesla shares have shown volatility recently. On Tuesday, the stock climbed about 1.7% to $333.90, rebounding after a dip from Monday’s high near $338. Last week, Tesla surged 5.15%, surpassing its 50-day moving average, largely driven by enthusiasm around the robotaxi launch.
Since the Q1 earnings call on April 22, Tesla stock has risen 39%, though it remains down about 17% year-to-date and about 32% below its all-time high of $488.54.
Technical Metrics and Investor Tools
Tesla’s stock shows a 21-day average true range (ATR) of 4.24%, indicating moderate daily price swings that investors should monitor closely. The stock currently holds a 66 Composite Rating out of 99, with an 86 Relative Strength Rating and a 58 EPS Rating, reflecting a mixed technical profile.
Investors interested in tracking Tesla and other growth stocks can utilize tools like the IBD Leaderboard watchlist, IBD 50 growth stock list, and IBD SwingTrader for timely market insights.
As Tesla reports Q2 earnings, the market’s focus will be on how the company navigates tariff pressures, regulatory credit changes, and AI innovation—especially the progress on robotaxis and full self-driving. Elon Musk’s commentary during the earnings call could sway investor sentiment, as expectations rise for updates on affordable vehicle launches and guidance for the remainder of 2024.
Tesla’s stock volatility, combined with evolving trade policies and shifting EV incentives, sets the stage for a crucial earnings report that could reshape investor confidence heading into the second half of the year.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
