Tesla (TSLA) Is About to Report Q2 Earnings. Here's What to Expect
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Analysts expect the company's bottom line to be impacted by a 13% decline in revenue to $22.19 billion and lower margins.
As seen in this chart from Main Street Data, Tesla's Q2 deliveries declined 13.5% year-over-year to around 384,120 vehicles. Investors will look forward to management's commentary on the demand backdrop in the EV space amid tough macro conditions and growing competition, the launch of low-cost EV models, further rollout of robotaxis, and the changing regulatory landscape.
Analysts' Views Ahead of Tesla's Q2 Earnings
Heading into Q2 results, Cantor Fitzgerald analyst Andres Sheppard reiterated a Buy rating on Tesla stock with a price target of $335. The 5-star analyst updated his Q2 estimates to reflect Tesla's deliveries and lower-than-expected deployment of energy storage products in the quarter. Sheppard expects Q2 revenue to come in at about $21 billion, down from his prior estimate of $24.1 billion.
Interestingly, Sheppard kept his 2025 and 2026 annual revenue and EPS estimates intact. The analyst views the company's robotaxi business as a 'software-as-a-service, high-margin model,' and expects it to have the ability to rapidly scale following commercialization. Sheppard remains confident about Tesla's ability to capture a significant share of the autonomous driving and ride-sharing industries.
Meanwhile, Barclays analyst Dan Levy reiterated a Hold rating on Tesla stock with a price target of $275. Interestingly, Levy believes that even as the company faces 'increasingly weaker fundamentals,' TSLA stock could outperform following Q2 results as investors focus on long-term robotaxi ambitions. The analyst added that Tesla's Q2 earnings call presents an opportunity for the company's robotaxi/autonomous vehicle (AV) narrative to shine. He thinks that Musk might discuss fleet growth targets or expansion plans during the call.
While Levy expects a slight sequential improvement in Tesla's auto gross margin (excluding regulatory credits), he cautioned that margins will likely remain depressed compared to prior years. The analyst also noted the decline in Tesla's full-year EPS estimate from over $3.20 at the beginning of the year to $1.84. Levy believes that the expected delay in the launch of Tesla's low-cost model could also weigh on investor sentiment.
AI Analyst Is Bullish on Tesla Stock Ahead of Q2 Print
TipRanks' AI stock analysis reflects an Outperform rating on Tesla stock with a price target of $351, reflecting a 6.85% upside potential. The AI analyst rating is based on strong financial performance and favorable aspects highlighted during the Q1 earnings call. However, technical indicators are mixed and valuation looks elevated.
Options Traders See Major Movement in TSLA Stock on Q2 Earnings
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 7.36% move in either direction in Tesla stock in reaction to Q2 results.
Is TSLA Stock a Buy or Sell?
Given the ongoing challenges, Wall Street has a Hold consensus rating on Tesla stock based on 13 Buys, 13 Holds, and eight Sell recommendations. The average TSLA stock price target of $299.52 indicates a downside risk of 8.8% from current levels.
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Business Insider
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- Business Insider
We visited the first Tesla Diner. It was surreal and heavy on nostalgia, but we'd go back.
Dozens of Teslas — of all models and colors — packed into the lot of Elon Musk 's new diner on Monday evening as West Hollywood's newest restaurant celebrated its grand opening with fanfare, curiosity, and at least one protester. The retro-futuristic eatery drew a pedestrian crowd that at times circled the block and provided a promenade for tricked-out electric vehicles. Diehard Tesla fans and curious onlookers alike stopped in for a bite to eat and a selfie with a popcorn-serving humanoid robot. The unusual atmosphere paired a mix of nostalgia and science fiction: "The Twilight Zone" played on giant screens, servers dashed by on roller skates, and EVs and robotics were proudly on display. "Aiming to be a fun experience for all, whether Tesla owners or not. Will keep improving," Musk wrote on X following the Tesla Diner's official opening. While the buzzy diner was a bit chaotic, Business Insider's Ben Bergman and Katherine Tangalakis-Lippert agreed: the architecture was eye-catching, the atmosphere was intriguing, and the menu, served up by celebrity chef Eric Greenspan, was tasty enough to warrant more visits. Representatives for Tesla did not immediately respond to a request from Business Insider for comment. A past-meets-future design Tesla applied for permits for a "Tesla restaurant and supercharger station" in Santa Monica in 2018, just months after Musk first hinted at his plans to build a retro diner at a charging station. After years of waiting for construction to be completed, one would expect the Tesla Diner to be worth ogling — and it didn't disappoint, especially at night. The diner sits on a corner of Los Angeles's famous Santa Monica Boulevard, aka the historical Route 66, and it features sleek, curved edges, a rooftop patio overlooking two 45-foot-tall drive-in screens, and retro neon signs. The expansive parking lot has V4 80 Supercharger stalls, making it the largest urban charging hub in the world. Dozens of Cybertrucks — some polished, several modified for off-roading, and one adorned with a DogeCoin-themed vinyl wrap — paraded through the lot on opening night while other models of Tesla vehicles honked their horns or blew bubbles. Inside, the restaurant looks like what you might expect an animator from "The Jetsons" would dream up: a vintage perspective on the future. The crisp white walls and shiny white tile floor stand in stark contrast to the black ceilings with neon blue lighting. The seating is familiar to anyone who's been to a diner, though few patrons stayed in the main dining area. Large clusters of customers formed around the "pick-up" area of the bar, waiting for their orders, while others ate upstairs on the Skypad. Large, rounded windows fill many of the building's walls, and artwork includes prototypes of humanoid robots created by Tesla: Bumblebee, a 2022-era droid, and iterations of Optimus, which the company is working to bring to market. A classic diner menu, reimagined Chef Greenspan, a James Beard award nominee and Food Network personality known for his imaginative takes on old-school favorites, took control of the kitchen for the Tesla Diner's opening service. The menu, available 24 hours a day, highlights classic diner fare: smash burgers, hot dogs, tuna melts, club sandwiches, chicken and waffles, tallow fries (wagyu chili and cheese optional), and milkshakes. Breakfast options, also available around the clock, include breakfast tacos, avocado toast, biscuits and gravy, yogurt parfaits with berries, and cinnamon rolls. Prices range from $9 to $15 for entrées, which come in Cybertruck-themed packaging, and sides run from $4 to $12. Kids' meals are $13 a piece, and drinks start at $4. No alcohol is served on-site. Though some on social media were quick to critique the price point, prices are comparable to other nearby restaurants, including the classic Astro Burger joint down the street, established in 1972, which offers similarly priced grub and retro vibes. For dinner, one BI reporter and their date tried the Tesla Burger, Fried Chicken & Waffles, Tallow-fried fries with wagyu chili and cheese, Hash Brown Bites, Epic Bacon, and two milkshake flavors. At breakfast, another BI reporter had breakfast tacos, a cinnamon roll, and an iced latte. Everything sampled was worth a second bite — there were decidedly no disappointments on the menu items tried. However, the food was somewhat inconsistent, as one might expect from a grand opening, when the kitchen is still working out the kinks. Half of the Tesla Burger had a classic smash burger texture, while the other was so thick it was medium rare in the center. The bacon had some burned bits and some chewy ones, and the tallow fries varied in texture. The breakfast taco was tasty, but it was overpowered by too much cheese. Several customers during the dinner service complained that their meals took upward of 45 minutes to be served. Eater reported that Musk himself demanded every item on the menu be "epic" or be removed from its list of offerings. The "epic" bacon — with maple glaze and black pepper — was perhaps the least exciting bite of the meal, in one reporter's view. All told, however, the menu was solid diner fare: nothing revolutionary, but it hit the spot. Still working out the kinks The Tesla Diner was bustling within hours of its opening, with trash already strewn on the floor and foot scuffs highly visible on the light-colored flooring. Greenspan could be heard shouting through the restaurant during dinner service, calling out orders to be re-fired or rushed as the kitchen dealt with wave after wave of guests flowing through its doors — typical for a grand opening. For a place emphasizing technology and robots, there was also a lot of human help. Scores of helpful and friendly staffers guided drivers to their spots and helped handle all the traffic. As one reporter was eating their meal, a worker came over to ask: "How are you enjoying everything?" Upstairs on the Skypad, an Optimus robot was serving popcorn to guests. Staff gave conflicting information on whether the bot was controlled by a human operator. One said the bot was "legit" serving up the treats on its own, while another — who was serving as security for the bot when BI stopped by — said its human operator was no more than 30 feet away. The demonstration was meant to "mimic" what the real operations would look like when the bots were fully operational, the second staff member said. Tesla representatives did not immediately respond to questions about Optimus' autonomy. The diner is open 24/7, and for Tesla owners, it's useful to have somewhere nice to go and grab a bite or just work on your laptop during the 45 minutes or more it can take to charge your vehicle. During the opening, idle fees — which Tesla charges when a vehicle remains plugged into a Supercharger after reaching its limit and the station is at least half full — were waived. Tesla drivers are supposed to be able to order food directly from the screen in their cars, though that feature was not available as of Tuesday. One worker said it would be ready on Wednesday after a "software update." Fans and curious passersby outweighed critics by a large margin. At least one anti-Musk protester was spotted outside during the dinner service, with a sign that read "Workers should have power, not the billionaires!" While it remains to be seen how long the novelty of the Tesla Diner will linger at this location, Musk has said this is just the first of many souped-up Supercharger stations to come. On Monday, shortly before the Los Angeles location opened its doors to the public, Musk confirmed in a post on X that he's planning to build a second drive-in near SpaceX's Starbase spaceport in Texas. "If our retro-futuristic diner turns out well, which I think it will, @Tesla will establish these in major cities around the world, as well as at Supercharger sites on long distance routes," Musk said in a separate post. "An island of good food, good vibes & entertainment, all while Supercharging!" Whether the diner guests are primarily Tesla drivers or inquisitive onlookers, the Tesla Diner makes it clear that Musk is expanding his EV brand — and the food was pretty good.
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