Here's what Wall Street thinks about Tesla's second-quarter results

CNBC

6 days ago

Wall Street ratings were a mixed bag after Tesla's second-quarter financial results. Tesla on Wednesday reported a second straight quarter of declining automotive sales , which came in at $16.7 billion for the period, down from $19.9 billion in the same quarter last year. The company also missed on top and bottom lines. Shares of the electric vehicle maker plunged 6% in premarket trading, piling on its roughly 17.7% year to date loss. Tesla has struggled in key markets such as China and Europe and notably lost market share to Chinese companies that have released lower cost EV models. Still, analysts have a wide range of ratings and price targets on Tesla shares. It's a company that bulls tend to stick by for its future value in technologies such as robotaxis, not necessarily its near-term innovation. Analysts polled by LSEG have a consensus price target on Tesla that implies more than 9% downside for Tesla shares. Of the 54 analysts covering the stock, five rate it a strong buy, while 19 rate it a buy and 20 maintain a hold. Ten have an underperform or sell rating on shares. Here's a look at what some Wall Street majors said after the EV maker's earnings release: Goldman Sachs keeps neutral rating, lifts price target to $300 Analyst Mark Delaney raised his 12-month price target to $300 from $285. He said he expects Tesla's revenue growth and profits to improve in 2026, but is keeping his 2025-2027 estimates below the FactSet consensus. "We believe a key focus for investors going forward will be the ability for revenue and profits to reaccelerate driven by Tesla's AI enabled products (e.g. robotaxis, FSD) and new vehicle launches against a more difficult policy environment and given competition," Delaney said in a Wednesday note. "Management did note the potential for the end of IRA EV purchase incentives in 4Q to temporarily pressure fundamentals, but the shift to AI enabled products including robotaxis/FSD and Optimus would be a substantial long-term driver." Wells Fargo reiterates underweight rating, $120 price target Wells Fargo sees major room for downside ahead. Analyst Colin Langan's price target implies Tesla shares stand to lose nearly 64% from their latest close of $332.56 per share. Tesla shares are down in post-earnings trading "despite a Q2 op margin beat as fundamentals look worse into 2H. TSLA did not provide new delivery guidance & warned of added pressure from tariffs, IRA & OBBB. We agree with 2H concerns & remain UW," Langan wrote in a Thursday note. He remains cautious on robotaxis, even after CEO Elon Musk's bullish commentary that robotaxis will "probably address half the population of the U.S." by year-end, and that Tesla expects an Optimus 3 prototype by the end of the year to scale next year. Langan said that scaling robotaxis and Optimus humanoids could take longer than expected, which he believes raises risks as Tesla's core business weakens. Morgan Stanley maintains overweight rating, $410 price target Analyst Adam Jonas is a well-known Tesla bull. He reiterated Tesla as a top pick and kept a target price that implies about 23% potential upside. Still, Jonas lowered his fiscal year 2025 earnings per share expectations by 14% compared to prior forecasts, mostly driven by lower deliveries and higher operating expenses. "2Q numbers were a slight beat with FCF near break-even. Tesla 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," Jonas said in a note about Tesla's results. "Our OW rating and $410 price target are underpinned by our belief that Tesla's capabilities in key areas of physical AI ... offer growth and margin opportunities that greatly exceed those of the traditional EV business, which is under pressure," he added. "we struggle to think of any other company as well positioned as Tesla in terms of data, robotics, energy, AI, manufacturing and supporting infrastructure Bank of America reiterates neutral rating, $341 price target Analyst Federico Merendi anticipates "rough quarters ahead" for Tesla, echoing Musk's commentary. His neutral rating on the stock relies on Tesla's current market advantage in autonomous driving initiatives and physical AI applications, he said. "Tesla commentary on future developments in terms of real-world AI (Autonomous vehicles/robotaxi and Optimus) remains bullish. However, the company is facing challenging times," he wrote in a note to clients. "Commentary also suggests that the tariff impact may increase in the future. However, by end of 2026, management thinks that Tesla's economics will be compelling with autonomy at scale." Evercore ISI maintains in-line rating, $235 price target Analyst Chris McNally expects Tesla's third-quarter results to see the downbeat effects of slower EV launches and tariff impacts. "The LT negative EPS revision trend has continued, unabated," he said in a note. "We believe there will be a sharper cons move post Q3."