Investors are eagerly awaiting Tesla’s (NASDAQ:TSLA) second-quarter earnings report, set to be released postmarket on Tuesday. Analysts are projecting earnings of 62 cents per share on revenue of $24.77 billion. While revenue estimates are slightly higher than the previous quarter, earnings are expected to decline by 30% compared to the previous year.
In the first quarter, Tesla reported adjusted earnings of 45 cents per share on a 9% decrease in revenue. Despite better-than-expected second-quarter delivery numbers, the stock took a hit after CEO Elon Musk announced a delay in the launch of the Robotaxi. This setback has put more focus on the upcoming earnings report as a key catalyst for the stock.
Analysts have mixed opinions on Tesla’s future prospects. Guggenheim analyst Ronald Jewsikow has a sell rating on the stock with a price target of $134, implying a 46% drop from current levels. Jewsikow doubts Tesla’s ability to deliver on its promises of a Robotaxi future, projecting that widespread adoption of this technology may not happen until 2030 or later.
Barclays analyst Dan Levy shares a similar sentiment, expressing concerns about Tesla’s challenging fundamentals. Levy believes that weak sales volumes and ongoing margin pressures could lead to disappointing results in the second quarter. He rates Tesla as equal weight, indicating a neutral outlook on the stock.
On the other hand, Morgan Stanley (NYSE:MS) analyst Adam Jonas remains bullish on Tesla, giving the stock an overweight rating. Jonas sees Tesla as more than just a car company, emphasizing its potential in artificial intelligence and energy storage. He has set a price target of $310, suggesting a 23% upside from current levels.
Overall, the upcoming earnings report will be a key driver of Tesla’s stock performance in the near term. Investors will be closely watching the results to gauge the company’s financial health and growth prospects in a competitive electric vehicle market.
Footnotes:
- https://www.cnbc.com
- https://www.wellsfargo.com
- https://www.morganstanley.com
