The recent public offering of Space Exploration Technologies, also known as SpaceX, has given Elon Musk fans another investment option to consider, as Tesla (TSLA 3.04%) now has to share the spotlight. And at a market cap of around $1.5 trillion, it is firmly behind the rocket company, whose valuation was north of $1.9 trillion as of the end of last week.
Tesla's stock is down close to 10% for the year, and a big test for it could be how it does in its upcoming earnings report. Its latest quarterly earnings numbers are set to come out on July 22. Could they give the stock the boost that it desperately needs? Here's what I think will happen.
Image source: Getty Images.
The company is likely to show some decent growth on both top and bottom lines When Tesla last reported earnings, its growth rate was impressive at 16%. The company has reduced prices as it looks to fend off competition, and its revenue totaled $22.4 billion during the first three months of the year, versus $19.3 billion a year ago. Earnings were up by 17%, but they weren't as strong as they had been in prior years.
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Ultimately, I expect a similar story to play out in the second quarter, particularly with Tesla recently reporting stronger-than-expected delivery numbers. Growth is likely to be high and better than expected. And with the company going up against soft earnings numbers, it may very well produce some strong results on the bottom line as well. All in all, the results may look strong.
Why Tesla's stock may still be destined to fall In recent years, it's been more common to see Tesla's stock fall after earnings rather than for it to skyrocket.
TSLA data by YCharts
It's not just about how the company has performed over the past quarter, but also about its guidance and outlook for the future. What complicates things now is that Musk fans have another option: SpaceX. If Tesla's outlook doesn't look as promising, which may very well be the case, as it isn't in the business of making rockets or investing heavily in artificial intelligence, it may simply fall out of favor with investors.
The lack of excitement around Tesla's recent delivery numbers may very well be proof of that. And that's also why I believe even though the company may have some decent numbers in Q2, that may not be enough to get investors excited about a stock that trades at nearly 400 times its trailing earnings.
Tesla continues to be an overvalued stock, which is why I wouldn't be surprised to see it fall after it reports its latest numbers, as expectations are likely to be high.
Now that Elon Musk's rocket and satellite company Space Exploration Technologies (SPCX 4.51%) trades publicly, Wall Street has started hunting for the next best thing: stocks that can ride its coattails. The most eye-catching call came from J.P. Morgan, whose analysts described a possible combination of SpaceX and Tesla (TSLA +0.22%) as "strategically coherent on paper." That single phrase has revived a long-running fantasy among investors, and it's worth understanding what the analyst company actually means before treating any of these names as a back door into SpaceX.
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Why J.P. Morgan sees logic in a Tesla-SpaceX tie-up J.P. Morgan's argument is that Musk's companies already share engineering talent, an artificial intelligence ambition, and a common leader, so uniting them could let him run one integrated vision across cars, robots, energy, and space. The analysts also noted that SpaceX's blockbuster public debut gives Musk valuable stock to make a deal, and that his growing voting control at Tesla makes him better positioned to push one through.
Image source: Getty Images.
J.P. Morgan was careful, though, and so am I. It flagged real obstacles: securing regulatory approvals across many countries, especially China, where Tesla builds cars; the awkward gap between Musk's near-total control of SpaceX and his smaller stake in Tesla; and the likelihood that any deal would look like SpaceX swallowing Tesla rather than a merger of equals.
"Coherent on paper" is a long way from "likely to happen."
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The other SpaceX-by-association plays Tesla isn't the only name catching the halo. Deutsche Bank started coverage of EchoStar (ECHO 2.00%) with a buy rating, framing it as a cheaper way to own SpaceX. EchoStar holds roughly $11 billion of SpaceX shares it received for handing over wireless spectrum, so the bank argues you're effectively buying SpaceX at a discount and getting EchoStar's other assets thrown in. The catch is serious: EchoStar's pay-TV subsidiary recently filed for bankruptcy, and the stock has tumbled.
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Then there's Charter Communications (CHTR 2.64%), which, according to Bloomberg, has held talks with SpaceX about a consumer mobile phone service that would route some traffic through Charter's network. It's a genuine strategic fit, but it's only talk for now.
Here's my honest read. Buying a stock because it's linked to a hot company is a strategy built on hope, not fundamentals, and all three of these names are down this year for reasons of their own. A merger that's merely "coherent on paper," a spectrum stake wrapped around a bankruptcy, and a rumored partnership are not the same as durable businesses. If you like Tesla, EchoStar, or Charter, buy them for what they do today, and treat any SpaceX connection as a bonus rather than the thesis.
Over the past decade, Tesla (TSLA +0.22%) and Meta Platforms (META +6.16%) have delivered market-beating returns. But some may argue that there is little upside left for either stock. Tesla and Meta have underperformed broader equities this year, and as they invest heavily in artificial intelligence (AI), we may see their margins compressing, leading to even worse stock market performances, or so the argument goes. However, despite this potential problem, there are good reasons to think Tesla and Meta Platforms have significant long-term upside. Read on to find out more.
Image source: The Motley Fool.
1. Tesla Tesla is a somewhat risky stock. The company's core electric vehicle (EV) business is facing more competition in the U.S., with Rivian recently launching an alternative to its best-selling Model Y. China-based automakers are also making significant strides abroad. Meanwhile, Tesla is trading at 178.6x forward earnings. The stock could contract over the next few years if it fails to make progress where it matters most. And the market is no longer primarily focused on Tesla's EV segment. Instead, investors and analysts are paying close attention to the company's robotaxi service that could transform its business.
A successful robotaxi operation would increase high-margin revenue from ride-fee charges. These could be fairly substantial across the company's entire fleet. Instead of sitting idle for most of the day, Tesla's EVs could be active for significant portions of a 24-hour period and would only need "rest" when charging, for maintenance purposes, or while waiting for customers to order rides. At scale, we could be talking about hundreds of thousands, or perhaps even millions of rides per day. Given this potential opportunity, it's not surprising that many investors are excited about Tesla's future. The company's shares recently jumped after it announced it would launch robotaxis in Miami.
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But there is even more to Tesla's business. The EV maker is also working on the next-gen version of its humanoid robot, Optimus 3. Dominating this market could be yet another massive opportunity for Tesla, as humanoid robots capable of performing many tasks as well as humans could see significant demand from individual consumers and especially corporations looking to replace some of their workforce. Tesla will certainly add high-margin revenue streams to its robots, including remote software updates, subscriptions, and premium capabilities.
Tesla's shares could soar over the next decade if its robotaxi and humanoid robotics ambitions materialize. However, there is plenty of downside risk as well, including the possibility that the company fails to gain a foothold in the robotaxi industry due to competition or regulatory setbacks, among other risks. It's important to keep that in mind and invest accordingly.
2. Meta Platforms Meta Platforms' advertising business is performing well. It has even improved in recent quarters thanks to artificial intelligence (AI). The company's short-form video platforms on Facebook and Instagram, coupled with AI-powered algorithms that keep users glued to their screens, have helped boost engagement across its websites and apps, leading to higher ad demand. In the first quarter, the company's revenue increased by 33% year over year to $56.3 billion. Its earnings per share came in at $10.44, 62% higher than the year-ago period.
So, although many fear that Meta Platforms' AI-related spending won't pay off, it is already doing so. And there is more where that came from. According to reports, the social media giant is exploring launching a cloud computing business. The company could sell excess AI computing capacity to other corporations. This could be a game changer for Meta Platforms. Several companies are seeing strong success within this niche, and it should expand significantly over the medium term, along with AI infrastructure spending.
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Meanwhile, Meta Platforms has significant strengths that could drive improved financial results. The company ended the first quarter with 3.56 billion daily active users. This vast ecosystem can enable the company to successfully launch new monetization opportunities, as it has in the past. Meta's Threads, a competitor to X (formerly Twitter), has grown rapidly and is on track to become the leader in its category, according to management. Meta Platforms' WhatsApp paid messaging and subscription services still make up a tiny portion of its revenue, but they are growing at a good clip.
Meta's robust core business and strong competitive advantage from its brand name and network effects make the stock attractive, and the company's growth path beyond advertising could transform the business and send its share price soaring.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The first phase of the artificial intelligence boom rewarded the companies building the digital infrastructure. Hyperscalers are spending hundreds of billions of dollars expanding data centers to power the next generation of AI services.
That investment cycle isn’t over, but the market’s attention is beginning to shift toward the businesses turning that computing power into products consumers actually use. Few companies are better positioned for that transition than Tesla (NASDAQ:TSLA | TSLA Price Prediction), which combines an AI application with something few competitors can match — its own computing infrastructure.
Tesla Controls More of the AI Stack Most AI application companies operate as tenants. They rent computing power from cloud providers, pay for inference every time an AI model runs, and accept lower margins as usage expands.
Tesla has taken a different path. It has invested billions of dollars building its own AI training infrastructure, including its Cortex supercomputer and custom Dojo hardware. It also designs its own Full Self-Driving chips that power vehicles already on the road. That gives Tesla unusual vertical integration.
Instead of relying entirely on outside cloud providers, the company owns more of the technology stack — from silicon and data collection to model training and the finished consumer product. In plain English, every layer Tesla controls is one less layer where profits can leak to someone else.
That infrastructure advantage becomes even more important when you look at where Tesla plans to monetize its AI investment: robotaxis. Unlike most competitors in autonomous ride-hailing, Tesla isn’t just developing the software — it also controls the hardware and much of the computing infrastructure behind it.
Let’s compare that approach.
Company AI Application Owns the Infrastructure Vehicle Manufacturing Tesla Robotaxi, FSD Yes Yes Waymo Robotaxi No No Uber Technologies (NYSE:UBER) Ride-hailing No No That combination makes Tesla resemble a scaled-down hyperscaler rather than a traditional software company.
Texas Could Change the Robotaxi Story Robotaxis have spent years trapped between technological progress and regulatory caution. That balance shifted when Texas approved legislation creating a statewide framework for autonomous vehicle operations. The change gives Tesla a larger runway to expand robotaxi deployments instead of navigating a patchwork of local approvals.
The market still values Tesla largely on vehicle deliveries, automotive gross margins, and electric vehicle demand. Those remain important metrics, but they may not capture the economics of a software-driven transportation network.
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Software businesses often generate higher margins because every additional customer requires little incremental cost. If robotaxi adoption accelerates, Tesla could begin layering recurring software revenue on top of vehicles already rolling off its production lines.
Manufacturing Gives Tesla an Edge Tesla’s biggest advantage over rivals like Waymo and Uber isn’t just artificial intelligence. It’s manufacturing.
Waymo must partner with automakers and retrofit existing vehicles with autonomous hardware. Uber depends on outside fleets and third-party drivers. Scaling either model requires coordinating multiple companies.
Tesla starts with millions of vehicles already designed around its technology. New vehicles leave the factory prepared for autonomous capability as the software improves. That production scale lowers deployment friction and could allow Tesla to expand faster than competitors that must build or modify vehicles one fleet at a time.
Granted, regulatory approval remains uneven outside Texas, and fully autonomous driving still faces technical and legal hurdles. Those risks deserve investors’ attention.
Key Takeaway In short, Tesla is becoming more than an automaker. It is building an AI ecosystem that combines proprietary chips, dedicated computing infrastructure, massive real-world driving data, and a consumer application with global reach. Few companies outside the hyperscalers control that much of the value chain.
The market still focuses heavily on quarterly vehicle deliveries. Ultimately, if robotaxis evolve into the first truly mass-market AI application, investors may begin valuing Tesla less like a car company and more like an AI platform with manufacturing capabilities — a combination that remains rare in today’s market.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
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Leaderboard Quarterly Scorecard Webinar Q&A Summary For Thursday, July 9, 2026 Tesla faces a new bill in New Jersey that could potentially ban its autonomous vehicles because of the method in which they operate. At the same time, on the other side of the world in China, Elon Musk's car company made slight gains in EV market share, despite a year-over-year decline in retail sales. Amid all this news, Tesla (TSLA)…
Tesla (NASDAQ:TSLA | TSLA Price Prediction) just posted one of its cleanest quarters in years, and the market shrugged. Tesla grew Q1 2026 revenue 15.78% year over year to $22.387 billion, expanded automotive gross margin by 490 basis points to 21.1%, and grew free cash flow 117%.
Yet shares are down 12.38% year to date at $394.06. The question I want to answer: can Tesla realistically hit $700 by 2031?
Why Tesla Shares Are Stuck Despite Improving Fundamentals Shares are off 7.35% in the past week and 3.64% over the past month, reflecting a real disconnect between fundamentals and price.
The narrative in recent coverage is unforgiving: one bearish note called Tesla “massively overvalued” with vehicle deliveries below 2 million annually and Chinese competition eroding share.
Meta just overtook Tesla in market cap because Tesla’s decline outpaced Meta’s performance. With a beta of 1.802, this is a volatile stock in a market that punishes any hint of demand softness. Inventory ticked up to 27 days from 22. That is the picture today.
Wall Street Sees Modest Upside. I Think They Are Anchored Too Low Analyst consensus sits at $424.01, with 5 Strong Buy, 18 Buy, 18 Hold, 4 Sell, and 2 Strong Sell ratings. Our internal model puts the base case at $418.24 (6.14% upside) with 90% confidence, a bull case of $482.09, and a bear case of $369.02 over the next year. Bullish sentiment sits at 49%.
My pushback: analysts are modeling Tesla as an automaker with a robotaxi option. If AI5, Optimus, and unsupervised FSD scale as planned, the earnings base in 2031 looks nothing like the annualized $1.64 run rate today. Consensus is too anchored to the near term.
The Path to $700 Per Share by 2031 Reaching $700 from today’s price of $394.06 would require a gain of 77.6%. That is roughly 12% annualized over five years, close to Tesla’s own bull-case annualized return of 10.86%.
Here is the P/E math. With forward EPS of $1.90, a price of $700 implies a forward P/E of 368x. Our base case of $418.24 already implies 217x, meaning the bold target requires 151x of additional multiple expansion at today’s earnings. That number looks absurd until you realize it is the wrong denominator.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.
The bull case rests on EPS compression, not multiple expansion. Cybercab, Tesla Semi, and Megapack 3 all hit volume production in 2026. FSD subscriptions grew 51% year over year to 1.28 million. Optimus lines are being installed for 1 million robots per year at Fremont.
Morgan Stanley projects a 30,000-vehicle robotaxi fleet by 2030. If forward EPS compounds toward $10 by 2030, $700 is a 70x multiple on a business growing 25%+. The risk: any material delay in Cybercab or unsupervised FSD scaling collapses the thesis.
Where Tesla Trades Today vs Its Earnings Power At $394.06 against $1.90 forward EPS, Tesla trades at 207x forward earnings. Shares sit between the 52-week high of $498.83 and low of $297.82, closer to the middle.
Over ten years, TSLA has returned 2,626.68%. This stock has repeatedly compressed insane multiples through EPS growth investors thought was impossible.
The Bottom Line on $700 $700 by 2031 requires a 77.6% total gain, or roughly 12% annualized. It is a stretch, but not a fantasy.
Three things need to go right: Cybercab needs to hit meaningful volume by 2028, unsupervised FSD needs regulatory approval in California and Europe, and Optimus needs to become a real revenue line rather than a demo.
A prolonged China share loss or a Cybercab production stumble would derail it. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Tesla could reach $700 in 2031.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Tesla, Inc.'s Q2 deliveries rose 25% YoY, FSD subscriptions 51%, and storage deployments 40.6%; it is obvious that the company will beat consensus financial estimates. TSLA's moat is its autonomy-energy stack: driving data, self-funding FSD, $10.15B of Energy RPO, megablock scale, and, if realized, Optimus labor substitution. Tesla is exceptional, but the stock is priced for domination: $1.5T versus $3.9B in trailing profit. Hold and cap at 5% of NAV; returns require vast earnings growth and a lasting premium.
Tesla’s Q2 delivery print reset the narrative. After two straight years of sales declines, Tesla (NASDAQ:TSLA | TSLA Price Prediction) reported 480,126 deliveries and 451,758 vehicles produced in Q2 2026, blowing past Wall Street expectations. A Tesla-compiled consensus had targeted 406,024 deliveries, while StreetAccount’s average was 406,600. Bloomberg called it a 25% jump from the year-earlier period and the best Q2 performance in company history.
The beat wasn’t a fluke of easy comps. CFRA’s Garrett Nelson was cited by Bloomberg as saying, “This was a much stronger than expected deliveries number, which we think was primarily driven by China and Europe.” Energy storage deployments came in at 13.5 GWh, up over 50% from Q1 2026.
The Market Is Already Looking Past the Cars Despite the beat, Tesla shares fell 7.5% on Thursday July 2, the steepest drop since July 2025, after four straight up days including a roughly 8% advance on Monday. Karobaar Capital CIO Haris Khurshid told Bloomberg: “Once the news actually arrived there just wasn’t as much left to get excited about.”
Shares have since stabilized. TSLA closed at $406.55 on July 9. Prediction markets on Polymarket are pricing a 72.5% probability of an up day on July 10, with month-end targets skewing bullish (69% probability of hitting $435 in July).
Physical AI Is the Real Thesis Now Q1 FY26 already showed the operating turn. Revenue grew 15.78% YoY to $22.39 billion, non-GAAP EPS came in at $0.41 versus $0.3481 estimated, and automotive gross margin expanded to 21.1% from 16.2%. Operating income surged 135.84%. Active FSD subscriptions climbed 51% YoY to 1.28 million.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here’s why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
UBS analyst Joseph Spak raised his TSLA price target to $442 from $364, citing long-term potential in physical AI and robotics. JPMorgan called a potential SpaceX-Tesla merger “strategically coherent”. Polymarket assigns that merger a 24.5% probability by December 31.
This infographic highlights Tesla’s strong Q2 2026 deliveries and Q1 2026 financial turnaround, alongside its strategic focus on physical AI and related market sentiments. It details key performance metrics and future initiatives for the company. What to Watch Into Q2 Earnings Tesla reports Q2 2026 financials after the close Wednesday, July 22, 2026, with the call at 5:30 p.m. Eastern. Capex is the story behind the story: Tesla plans to spend more than $25 billion this year, roughly three times last year’s outlay, on Optimus and autonomous Cybercabs, resulting in expected negative cash flow.
Risks remain real. BYD retook the global EV lead with 557,090 units, Cybertruck demand has disappointed, and SpaceX has bought thousands of Cybertrucks since late last year. Still, deliveries confirm the auto franchise is intact, supplying the missing ingredient for the AI story.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
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Why Tesla Stock Can’t Get Out of Its Own Way
In this article
In Samuel Beckett’s Waiting for Godot, two characters, Vladimir and Estragon, spend most of the play waiting for a mysterious Godot, who doesn’t arrive.
Order flow analytics examine real-time buying and selling behavior by analyzing volume, timing, and order size across both retail and institutional participants. These insights provide a deeper understanding of price action and market sentiment, allowing traders and institutions to make more informed decisions.
TSLA Performance
At the time of the Power Inflow alert, TSLA was trading at $394.09. Following the signal:
• Intraday High As Of 2:30PM EST: $407.85 (+3.49%)
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Vertiv (VRT +1.74%) may offer a cleaner way to invest in the AI infrastructure boom than Tesla (TSLA +3.06%). One has the bigger long-term vision, but the other is tied directly to the power, cooling, and data center systems needed today. The real question is which stock offers the better setup after both have become major AI infrastructure stories.
*Stock prices used were the market prices of June 30, 2026. The video was published on July 9, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Vertiv. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
HomeInvestingETFsOne expert doubts that new ETFs from Subversive will catch on in a meaningful wayJuly 9, 2026, 3:52 p.m. ET
A pair of new ETFs are betting that investors will ditch typical index funds to avoid having exposure to Elon Musk’s companies.
On Wednesday, Subversive ETFs filed to launch two new “Ex-Elon” actively managed exchange-traded funds. Each would exclude companies determined by fund managers to be “founded, controlled or led by” Musk, or which he is “primarily associated” with as a major shareholder or founder. For now, that’s just SpaceX SPCX and Tesla TSLA.
Key features of SFYI-Invests in the 50 most widely held U.S.-listed stocks across SoFi Invest self-directed brokerage accounts.
-Employs an actively managed options strategy, including covered calls and call spreads, to seek monthly income distributions alongside growth potential.
-Offers a lower capital barrier, as investors can access an options-based income strategy through a single ETF instead of owning at least 100 shares required for traditional covered call strategies.
-Provides access to complex options strategies through a convenient ETF structure.
-Applies its options strategy across a diversified portfolio rather than a single stock.
-Builds on the existing SoFi Social 50 ETF (NYSE:SFYF), which tracks the platform’s 50 most widely held stocks.
-Carries a gross expense ratio of 0.73%.
The launch comes as investors increasingly look beyond traditional fixed-income strategies amid an uncertain interest-rate environment and elevated market volatility.
According to SoFi, SFYI simplifies options-based income investing by embedding professionally managed covered calls and call spreads into a single ETF, eliminating the need for investors to build and manage their own options positions.
“Income-seeking investors are being challenged to rethink their traditional playbook,” said Brian Walsh, SoFi’s head of Advice and Planning, adding that the fund is designed to provide exposure to the platform’s most widely held stocks while pursuing monthly income and potential capital appreciation.
Photo: PJ McDonnell / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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SummaryTesla, Inc. remains my top long-term holding, driven by dominant Q2 deliveries and a robust multi-segment ecosystem.Q2 deliveries hit a record 480,126 vehicles (for any Q2), signaling a turnaround in core EV operations and potential for earnings beats.My Q2 estimates—$28.28B revenue, $0.51 EPS—are near the high end of consensus, with upside if margins outperform.I maintain a 12-month price target for TSLA stock of $550–$600, citing Tesla’s leadership in EVs, FSD, energy, and AI, and other segments, but highlight execution and valuation risks.Looking for a helping hand in the market? Members of The Financial Prophet get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images
You know, I've been bullish on Tesla, Inc. (TSLA) for a long time. In fact, the first time I bought into the stock was back in October 2013, which seems like ages ago. Nonetheless, my investment in Tesla has been
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am long a diversified portfolio with hedges.
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Known as one of the boldest portfolio managers out there, Cathie Wood of Ark Invest likes to swing for the fences with her exchange-traded funds (ETFs). This has led to some years of big gains for her flagship fund, the Ark Innovation ETF (ARKK +1.85%). In 2023, it rose 67.6%, and in 2025, it gained 35.5%. It has also resulted in some years with steep losses, like 2022, when it plunged by 67%.
As a rule, Wood invests in companies with disruptive technology, and she's willing to make big bets on those innovators. Let's look at five stocks she was recently buying on the dip.
SpaceX
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Although SpaceX (SPCX +0.58%) had its initial public offering less than a month ago, Wood has already made the stock one of her 10 largest positions, and she has been scooping up more shares as the stock has come down from its early peak. SpaceX is trying to be at the center of disrupting several industries. Among its goals is to deploy a constellation of data center satellites in space, create a giant chip manufacturing facility, and potentially compete with tradition mobile carriers with its Starlink satellite broadband service.
However, the stock trades at a high valuation, and the company will need to overcome numerous technical hurdles to achieve any of these moonshot objectives.
Cerebras
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Cerebras (NASDAQ: CBRS) is another recent arrival to the public market that has pulled back to well below its IPO price, and Wood recently added some shares of the company to a couple of Ark ETFs. Cerebras has an innovative solution for inference that embeds SRAM (static random-access memory) directly onto its chips. This gives the company a superior solution for inference, but it comes at a premium price, as its technology is based on huge, wafer-sized chips -- each about the size of a dinner plate -- that need special cooling and energy-management solutions that need to be sold or rented as complete systems.
Right now, Cerebras is a niche player in the chip space, but it has the potential to upend the inference market. It also has a big deal in place with OpenAI.
Tesla
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Wood has continued to add to her biggest position, Tesla (TSLA 0.28%). Tesla shares fell despite the electric vehicle (EV) market reporting better-than-expected second-quarter deliveries, led by gains in Europe, as U.S. deliveries remain weak. However, Wood's thesis on Tesla largely centers on the company's robotaxi ambitions, and its rideshare service recently debuted in a second market, Miami.
I remain skeptical of Tesla's robotaxi ambitions. Its autonomous driving solution has safety issues relative to competitors that use lida, and Waymo now has a first-mover advantage. If Tesla's robotaxi or robotics ambitions don't pan out as management has promised, the stock is clearly overvalued based on its core business.
Circle Internet Stablecoin platform Circle Internet (CRCL 1.05%) has been seeing its shares sell off following the news that Open Standard is introducing a rival stablecoin called Open USD, and Wood has been buying the pullback. The stock has lost nearly 70% of its value over the past year, during which time Wood has made it the Ark Innovation ETF's 12th-largest holding.
Circle has strong liquidity and a first-mover advantage that may make it difficult to unseat in this huge market. It's deeply integrated into decentralized finance (DeFi) protocols, crypto exchanges, and corporate treasury pilot programs. However, a serious threat could be looming: Big banks are expected to roll out a tokenized deposit network next year through The Clearing House that will introduce blockchain to mainstream finance. Circle will likely continue to dominate as the bridge between crypto networks and finance apps, but it likely won't be able to break into mainstream banking, which could limit the stock's upside.
Image source: Getty Images.
Palantir Another stock Wood has been buying on the dip is Palantir (PLTR 3.88%). The company has been caught in the software-as-a-service (SaaS) industry sell-off, although its unique position in the AI ecosystem would make it one of AI's biggest long-term winners. The company's Artificial Intelligence Platform (AIP) acts as an AI orchestration layer that helps reduce hallucinations and makes AI more useful for enterprises by gathering all of an organization's data and placing it in an ontology that it then links to real-world processes and objects.
While the stock is not cheap, trading at a price-to-sales (P/S) multiple of 39 times, the company has been seeing rapid and accelerating revenue growth, including a surge of 85% last quarter. Given how many use cases there could be for AIP across industries, Palantir has the potential to eventually become one of the largest companies in the world.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) is once again eating the financial press, with a $1.58 trillion market cap resting on Cybercab, Optimus, and robotaxi promises that traders keep paying up to own. But here’s what you should actually be watching.
The Hot Ticker Is Selling You a Timeline Strip away the AI narrative and Tesla is an auto manufacturer trading at 381 times trailing earnings, 200 times forward earnings, and a PEG ratio near 6. Its net profit margin sits at 3.95% and return on equity at 4.9%. Those are industrial-company fundamentals wearing a software-company multiple.
The delivery record is worse than the marketing suggests. Full-year 2025 revenue fell 2.93% and net income dropped 46.79%. Q4 2025 vehicle deliveries came in at 418,227 units, down 16% year over year. Q3 2025 EPS missed by 10.35% while operating expenses jumped 50% YoY on AI and R&D. Cybercab, Semi, and Megapack 3 have been described as “on schedule for volume production starting in 2026” in filings going back to Q2 2025. Same promise, new quarter.
Retail is catching on. The most-discussed Reddit thread in the last 30 days asked flatly: “People buying Tesla at a $1.2T valuation: what is the actual bull case?” It drew 630 comments and 702 upvotes. Shares are down 10.41% year to date and trading below both the 50-day and 200-day moving averages. This is a crowded trade beginning to lose its choir.
Where Retirement Money Should Actually Look Ford (NYSE:F) is the redirect. A $55 billion market cap, forward P/E of 8, and a 4.49% dividend yield. Three points make the case.
1. Execution is showing up in the numbers. Q1 2026 delivered EPS of $0.66, revenue of $43.25 billion up 6% YoY, and adjusted EBIT of $3.49 billion, a $2.50 billion improvement year over year. Management then raised full-year 2026 adjusted EBIT guidance to $8.5 billion to $10.5 billion. Companies raise guidance when the current quarter is already in the bag.
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2. Ford Pro is a real recurring-revenue story hiding in plain sight. Paid software subscriptions reached 879,000, up 30% YoY, with segment EBIT margin at 11.4%. That is the sticky commercial-fleet software business Wall Street is willing to pay 40x earnings for elsewhere. Here you get it inside an 8x stock.
3. Capital is coming back to shareholders. A $0.15 quarterly dividend was paid June 1, 2026, alongside $311 million in Q1 buybacks and $17.65 billion in cash. CEO Jim Farley told investors Ford is targeting an “8% adjusted EBIT margin by 2029.” Tesla returns capital through stock-based compensation and pitch decks.
For investors who want direct short exposure to the promise-heavy name rather than the constructive alternative, the AXS TSLA Bear Daily ETF (NASDAQ:TSLQ) holds 22.33% of net assets in inverse Tesla derivatives. That is a tactical trade for short-term positioning only.
For long-term investors weighing the two, Ford offers a profitable automaker paying cash today while Tesla’s timeline continues to slip.
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Elon Musk has been the wealthiest man in the world since 2024, and he reached trillionaire status for the first time when Space Exploration Technologies (SPCX +0.75%) stock briefly topped $200 a share in its first week of trading. However, SpaceX stock is now 26% off its highs, and Elon Musk is no longer a trillionaire.
What does that mean for his companies, SpaceX and Tesla (TSLA +1.26%), and for shareholders?
Image source: Getty Images.
Elon Musk and ownership Many of the world's billionaires have their wealth tied up in stock, usually as executives of their companies. Elon Musk heads two of the world's top-15 most valuable companies, and he owns a substantial stake in each. As of July, he owns 717.1 million Tesla shares, or 15.7% of the company, which is worth about $282.4 billion at today's price. He also owns about 46% of SpaceX stock, with more that could come his way based on performance measures. At today's prices, that's $704.5 billion worth, and together, his net worth is $987 billion, just shy of $1 trillion.
Both of these stocks have been sliding lately, although they're both trillion-dollar companies. SpaceX is the seventh-most-valuable company in the U.S., worth $1.94 trillion, while Tesla is 11th and worth $1.48 trillion. Tesla stock is down 12.4% this year. At $148 a share, SpaceX stock is still over its IPO price of $135, but it's dropped below its market open price of $150.
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What about other shareholders? Tesla shareholders have been well-rewarded over time. It's up more than 24,640% since it went public and has almost certainly minted some millionaires, even retail investors who aren't company insiders. However, like SpaceX, it has attracted investors based on hype and Elon Musk fandom. It's a growing company, but there's accelerating competition in the electric vehicle space, and there are worries about lower profits and a high valuation -- based on its shrinking net income, the stock currently trades at 368 times trailing 12-month earnings.
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SpaceX is even more expensive, trading at 110 times sales, and it's reporting high net losses. It's even clearer that the investing thesis is based on confidence in Elon Musk's vision.
Both of these are risky stocks, but SpaceX has an added risk tied to Elon Musk's ownership, and that's his 82.3% voting rights. That means other shareholders have no recourse if they're unhappy with his leadership or in making any other decisions about the company and its direction.
Right now, neither one of these companies looks like a great bargain on the dip.
There's a strong case to be made that no company has received as much hype entering the market as Space Exploration Technologies (SPCX 1.02%) SpaceX accomplished the largest initial public offering (IPO) in history and captivated a base of Elon Musk enthusiasts and loyalists.
Because of the Musk connection, people have been using Tesla's (TSLA 2.19%) performance as a benchmark for what could be possible for SpaceX. Tesla's stock has struggled this year (down 12% as of the time of writing), but it has produced generational gains since its June 2010 IPO.
A $1,000 investment in Tesla 10 years ago would be worth around $27,400 today -- impressive to say the least. Can SpaceX duplicate those results over the next decade? Let's take a look.
Image source: The Motley Fool.
The vision for SpaceX as a company At its core, SpaceX is a rocket launch company. That's what it was founded on, and that continues to be its foundation, but it's spreading its wings beyond just that. It offers Starlink -- a leading global broadband provider -- and, after acquiring xAI (the parent company of X, formerly Twitter), has become a respectable player in AI infrastructure.
That's where SpaceX stands today, but as with Tesla, the main appeal is the long-term ambitions it continues to sell to investors. The two ambitions most consistently discussed are putting data centers in space and achieving a multiplanetary civilization (i.e., humans living on Mars).
Neither of those is something I would expect to happen in the next decade (especially a multiplanetary civilization), but the trend for Musk and Tesla has been to sell the dream and vision and buy time with investors. Tangible progress in space data centers will be a must, though.
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What are the chances that SpaceX has a Tesla-like run? SpaceX's stock increasing by over 2,600% over the next decade would be quite the feat, but it would mean averaging 39% in annual returns over that period. That's far from an easy task, but we've seen it done before. In fact, Tesla's stock jumped over 6,100% in its first decade on the market.
We can't predict how any stock will perform, so there are no guarantees. However, if SpaceX were to make it happen, I'd imagine the bulk of those gains would come in the latter half of the decade. Mega-IPOs have a history of underperforming the market in the first few years after listing, and I see SpaceX following a similar path.
I wouldn't invest in SpaceX expecting it to replicate Tesla's run, since it began trading at a much higher valuation than Tesla, which could limit upside. Invest because you believe in the long-term vision, but there's no rush to do so right now. I'd wait until the IPO mania has cooled a bit before purchasing shares.
With all the excitement around Space Exploration Technologies, or SpaceX, still fresh in investors' minds, it's understandable if Tesla (TSLA 2.18%) has somewhat faded from investor attention. However, that shouldn't detract from the fact that there's been news on the company recently, some of it good, some bad, and more to come in the near term.
First, the bad news on Tesla Tesla is behind schedule on its robotaxi rollout. While recognizing that the rollout is not entirely under the company's control, the reality is that investors key in on what management tells them. Unfortunately, Tesla is not a company known for underpromising and overdelivering, especially when it comes to the robotaxi rollout.
Image source: The Motley Fool.
Back on an earnings call in July 2025, CEO Elon Musk said, "I think we'll probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year." Furthermore, going back to the fourth-quarter earnings presentation in January, the company said the robotaxi "status" for seven cities was "H1 2026." That was later changed to "ramping unsupervised" for Dallas and Houston, and "preparations underway" for Phoenix, Miami, Orlando, Tampa, and Las Vegas.
Having passed the half-year mark, only Miami has been added to the list of cities with unsupervised robotaxis (and only in a limited section of Miami), after Dallas and Houston were added in the first quarter and Austin in the last quarter.
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Does it matter? Whichever way you look at it, Tesla is behind management's previous proclamations on timelines. This matters because investors pencil in the company's earnings and cash flows based on these projections, which then need to be pushed back when timelines are not met. As such, it's not surprising that Tesla's stock price is down 6.7% as of this writing in 2026.
Moreover, investors will need to be patient with robotaxi as Musk was clear in the last earnings call in April that "I think it's not going to make sense for us to deploy unsupervised FSD or robotaxi large scale when we know that there are major architectural improvements to the software that can improve safety," and this implies waiting for v15 of its full-self driving (FSD) software, which Musk expects "hopefully by the end of this year, but certainly by early next year."
Clearly, the key question regarding the robotaxi during the upcoming earnings call is the current status of v15 FSD.
Image source: Tesla.
Tesla's second-quarter delivery total of more than 480,000 blew away the Wall Street consensus of about 406,000. While the bears will be quick to remind the bulls that Tesla isn't a car company (a long-held bullish argument), the reality is that it is good news for Tesla.
Not only does it confirm that the company has moved past the Model Y refresh issue that slowed sales last year, but it also shows it's retaining its market position even as rivals are scaling back their EV plans after failing to gain market share.
Moreover, some back-of-the-envelope calculations show that the 74,000 extra units above Wall Street estimates (assuming an average revenue per unit of $43,000) will result in $3.18 billion in "extra revenue." Given that Tesla's operating cash flow margin was about 15.6% in 2025 and assuming the extra deliveries are capital-spending-neutral, this could result in $500 million in "extra" free cash flow.
That will help derisk Tesla's capital spending plans, which include $25 billion in 2026. As such, the good news on deliveries helps derisk the company's plans.
A strange thing is happening with Tesla (TSLA 2.18%) right now. The company posted the best delivery quarter in its history, and the stock fell 7% in a day, its worst session in close to a year. Days later, a single city launch of a driverless taxi service sent the shares up by a similar amount.
Read those two moves together, and you get the real story: The market has stopped paying Tesla for its cars.
Image source: Getty Images.
On July 2, Tesla reported 480,126 vehicle deliveries for the second quarter, a 25% jump from a year earlier and a wide beat of the 406,000 that analysts on Wall Street had modeled. Production reached 451,758 vehicles, and the energy division deployed 13.5 gigawatt-hours of storage, above the 9.6 posted a year ago.
By any plain reading, that is a strong report. The stock sold off despite the beat, and it has dropped on each of the past three delivery updates.
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Part of the explanation sits inside the quarter. Much of the demand traces to a spike in gasoline prices tied to conflict in the Middle East, a tailwind that faded once oil prices settled. A share of Tesla's truck and battery sales runs through related parties: Musk's Space Exploration Technologies (SPCX 1.02%), or SpaceX, bought $269 million of Tesla Megapacks in April to power the data centers behind its xAI unit, after buying Cybertrucks the year before. Demand that leans on the founder's other companies is harder to bank on.
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The market is valuing Tesla as an AI company The clearest signal came the following week. Tesla widened its robotaxi service to Miami, its third U.S. market, and the shares rallied, closing near $420 on July 6. A delivery record dropped the stock; a robotaxi city lifted it.
That gap tells you where the value lives. Musk has steered the company toward its Cybercab, the Semi truck, and the Optimus humanoid robot, and he chose to end production of the flagship Model S and Model X to free the Fremont lines for Optimus.
This shift raises the stakes. If Tesla is priced as an autonomy and robotics company, the car business becomes a bridge rather than the destination, and a stumble on that bridge counts.
Competition from BYD and other Chinese makers keeps pressuring prices. A Tesla Semi was involved in a fatal crash in Nevada in late June, a reminder that autonomy carries safety and legal exposure. And a robotaxi in three cities is just a pilot, still not a business.
Investors need to watch the right scoreboard. Delivery beats will move the stock less than progress on robotaxi expansion, Cybercab volume, and Optimus. Tesla reports full financial results on July 22.
To me, that is the moment to test whether the AI story has supporting numbers.
Tesla stock (TSLA) fell on Wednesday as investors continued to look past the electric-vehicle maker's core automotive business and instead focused on the company's long-term artificial intelligence ambitions.
Shares were down 2.2% at $393.91 in midday trading after falling 4% on Tuesday.
The S&P 500 declined 0.8%, while the Dow Jones Industrial Average lost 1.5%.
AI remains the primary focus for investorsDespite reporting stronger-than-expected second-quarter deliveries earlier this month, Tesla's shares have remained under pressure.
The company recently reported stronger-than-expected second-quarter deliveries, selling about 480,000 vehicles worldwide, roughly 70,000 more than Wall Street had projected and 25% higher than a year earlier.
Even so, Tesla shares have declined since the delivery report and remain down about 10% for the year.
Investors continue to place greater emphasis on Tesla's long-term AI strategy, particularly the expansion of its robotaxi network and development of its Optimus humanoid robot.
Tesla launched its AI-trained robotaxi service in Austin about a year ago and now operates across three states.
Investors are waiting for the autonomous ride-hailing business to begin generating meaningful revenue and earnings.
The company is also developing the third generation of its Optimus humanoid robot, another project viewed as central to Tesla's long-term growth story.
For many investors, progress in robotaxis and robotics is expected to have a greater impact on Tesla's valuation than incremental improvements in vehicle sales.
Separately, JPMorgan analyst Rajat Gupta said on Tuesday that a potential merger between Tesla and SpaceX appears "strategically coherent on paper" but would face significant regulatory and governance challenges.
According to Gupta, combining the two Elon Musk-led companies would unify leadership across businesses spanning artificial intelligence, robotics, transportation, energy, and space, while leveraging shared assets such as the Terafab semiconductor facility.
The analyst noted that SpaceX recently completed a record initial public offering that raised approximately $85 billion at $135 per share, valuing the company at around $2 trillion. Tesla's market capitalization is approximately $1.25 trillion.
Gupta said SpaceX's public listing provides valuable acquisition currency but identified several obstacles to any potential transaction.
He cited China as a major regulatory challenge because of SpaceX's US government and defense contracts alongside Tesla's extensive manufacturing operations in the country.
The analyst also highlighted governance concerns, noting that Musk controls roughly 85% of SpaceX's voting power but about 20% of Tesla's, potentially complicating any merger and raising dilution concerns for Tesla shareholders.
Gupta added that the size difference between the two companies could make the transaction resemble a SpaceX acquisition of Tesla rather than a merger of equals.
Even without a formal combination, the analyst said operational ties between the companies are already extensive through shared engineering talent, artificial intelligence infrastructure, and the Terafab facility in Texas.
SpaceX’s executive compensation filing reads unlike anything in the history of SEC paperwork. The word “Mars” appears 63 times, including inside the formal executive compensation section, and the document contains a quote from Isaac Asimov. Reporters who reviewed it noted no real precedent in the history of executive compensation. The legal condition for CEO Elon Musk’s payday is a permanent human colony on Mars with at least 1 million inhabitants.
The $165 Billion Structure The SpaceX (NASDAQ:SPCX) board granted Musk 1 billion restricted shares of Class B common stock, on top of his existing stake of roughly 5 billion shares worth about $825 billion. The package is worth about $165 billion at the SpaceX share price referenced in the filing.
Two conditions must be met simultaneously for each tranche to vest: 15 escalating market-cap milestones up to $7.5 trillion in company value, paired with corresponding “human colony milestones” tied to Mars population. Both triggers, together, per tranche.
An employment clause seals the structure. Musk must still be running SpaceX when the board certifies the milestone; if he leaves before a million people live on Mars, he gets nothing. Musk previously said his motivation for the Tesla package was control: “If I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern.”
Why xAI and X Are Now “Mars Infrastructure” Three months before the filing, Musk merged xAI and X into SpaceX; the deal valued SpaceX at $1 trillion and xAI at $250 billion. The filing reframes both as prerequisites for a Martian settlement: autonomous robots to build habitats, AI able to operate independently given the roughly 20-minute Earth communication lag, and Starlink-scale connectivity.
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What Traders Actually Think Prediction market traders on Kalshi give SpaceX less than a 20% chance of successfully sending humans to Mars by 2030, let alone building a million-person colony. SpaceX has not specified a colony timeline, citing still-unproven technology. Uncrewed cargo flights to Mars are targeted as early as 2028, with Tesla’s Optimus robots as potential early payloads, while the Starship that would carry a million people is still in test flights.
SPCX Has Been Falling in Recent Weeks SPCX listed on June 12, 2026 and closed at $149.47 on July 7, 2026, down 7.13% since debut and 12.52% over the past week. NASA Administrator Jared Isaacman has said he has “no issue with important partners to NASA being well-capitalized”. Governance overseers have been quieter: no proxy advisory firm has reviewed a package conditioned on interplanetary colonization, and Norway’s sovereign wealth fund, which opposed the Tesla package citing “total size of the award, dilution, and lack of mitigation of key person risk”, now faces the same questions on a bigger canvas.
The Full Musk Compensation Picture On June 16, 2026, Musk exercised his 2018 Tesla (NASDAQ:TSLA | TSLA Price Prediction) pay package: 304 million options generating about $116 billion in gains in a single transaction, the largest equity event in corporate history. In November 2025, Tesla shareholders approved a separate $1 trillion pay package, currently worth about $178 billion. Bloomberg tallied Musk’s total 2025 Tesla compensation at $158 billion. Tesla cites “CEO award SBC” as a driver of operating expenses in its Q1 2026 filing, with the stock at $402.90 on July 7, 2026 and the stock down 10.41% year to date. Add the potential $165 billion from the Mars award, and the combined package would be the largest potential payday in human history.
Incentive Structure or Marketing Document? A compensation document that reads like a mission statement is also a marketing document. Some coverage suggested the Mars-linked award may have been designed partly to generate excitement around SpaceX going public. The bull case: if you believe humans will reach Mars in your lifetime, this structure aligns Musk with the mission more completely than any pay package ever designed. The bear case: a package conditioned on an event traders give under 20% odds of happening by 2030 has legal standing without operational meaning. The real question for anyone reading the S-1 today is whether buying SPCX at roughly a $1 trillion valuation is the right way to bet on the possibility that a million people might live on Mars in Musk’s lifetime.
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Tesla (TSLA 2.93%) stock is down about 7% on the year and off more than 15% from its 52-week high, as of this writing. However, things could be looking up after a dose of good news to start the month.
First, the company announced that it had delivered 480,126 vehicles in the second quarter. This was well above the 406,000 deliveries expected by analysts, as compiled by StreetAccounts. That was also much higher than the approximately 384,000 vehicles it delivered in Q2 of last year. The outperformance appears to be largely driven by Europe, with Deutsche Bank forecasting a 40% increase in the region during the quarter. Cox Automotive, meanwhile, estimated that U.S. deliveries dropped 20%.
Image source: The Motley Fool.
After the Fourth of July holiday weekend, Tesla announced on social media platform X that its robotaxi services were now available in Miami. According to Electrek, these services are only available in a small zone, with no service in areas like downtown Miami, the airport, and most of Miami-Dade County.
The improvement in deliveries is good news for Tesla, as its primary electric vehicle business has been struggling. However, it is still facing headwinds in the U.S. (loss of the federal EV tax credit) and in China (fierce competition), and the uptick in Europe could have stemmed largely from higher gas prices following the closure of the Strait of Hormuz. Because of this, there is no guarantee that this uptick is sustainable, and it may be more of a one-off pickup in demand.
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Meanwhile, much of Tesla's valuation is still tied to its robotaxi ambitions. While it is encouraging that the company is expanding beyond Austin, the area it is operating in around the Miami area is still very geofenced. At the same time, the company's operations in Austin remain a work in progress, with Electrek reporting that it only has around 14 unsupervised robotaxis in operation, down from a peak of 25 vehicles.
The reason for the slow expansion appears to be safety concerns. The NHTSA (National Highway Traffic Safety Administration) has reported several crashes, while independent data points to Tesla's robotaxis having a crash rate almost four times that of human drivers. While Tesla's camera-only tech is cheaper and would give it a cost advantage, its safety record is worse than the records of competitors, such as Alphabet's Waymo, that use lidar.
With the stock trading at a forward price-to-earnings of nearly 200 times and still struggling with its robotaxi ambitions, I'd stay on the sidelines. However, I think a potential acquisition by SpaceX likely limits some of the downside in the stock.
ToplineMeta edged past Tesla in market value Wednesday—not because Meta's stock rose, but because Tesla's fell harder—setting up Meta’s earnings report later this month as a test of whether the tech giant’s big spending on artificial intelligence is paying off.
Meta shares topped Tesla's market value by more than $50 million.
Photo illustration by Cheng Xin/Getty Images
Key FactsMeta’s total market value crossed above Tesla’s on Wednesday, with Meta shares trading at $605.16 as of 1:25 p.m. EDT—giving the company a market value of over $1.5 trillion.
Meta shares were down 1.7% on the day even as the milestone was reached, while Tesla's stock slid over 2.3%, handing Meta the lead in market value by default rather than through any gain of its own.
Meta has traded between $520.26 and $796.25 since last July and is now roughly around the middle of that range, well below the peak it reached last year.
BNP Paribas analyst Nick Jones told Benzinga that Meta investors looking toward the company’s earnings report this month will likely focus on how much the company is spending to build AI products and whether a planned cloud computing business—selling spare computing power to outside companies—can become a meaningful new revenue source.
What To Watch ForMeta’s next earnings report on July 29 will allow management to address how much it plans to spend on AI infrastructure in the second half of the year and whether its fledgling cloud computing business has any paying customers yet. Tesla will also face its own test on July 22, when the carmaker’s latest earnings will be published.
Big Number12.3%. That is how much Tesla shares have fallen since the start of the year, when they traded around the $438 mark. Meta shares have dropped 8.5% in that same period.
Key BackgroundMeta’s stock has dropped close to 25% from the all-time high of $796.25 it reached in August. A global tech rout gripped the market last month amid concerns a massive spike in AI spending may not translate to proportional revenue. Companies like Tesla, Nvidia, Intel, AMD and Broadcom suffered losses. However, some optimism remains around the industry. Erste Group upgraded Meta on Tuesday while Wells Fargo raised its price target to $767 on July 2, citing another quarter of robust ad growth. Tesla’s slide, meanwhile, has its own critics, with analysts at Seeking Alpha pointing to four consecutive years of stagnant vehicle sales and growing competition from Chinese electric-vehicle makers as reasons the stock's valuation looks hard to justify. Tesla shares have fallen roughly 21% since they recorded an all-time high in December.
Further ReadingGlobal Tech Rout—Nvidia, Tesla, More—Hits Markets: Here’s What Fueled The Selloff (Forbes)
Tesla (NASDAQ:TSLA | TSLA Price Prediction) is the most polarizing stock in the S&P 500. Automotive gross margin snapped back to 21.1% in Q1 2026 from 16.2% a year earlier, FSD active subscriptions hit 1.28 million (+51% YoY), and shares still sit down 6.66% year to date at $419.77. The question is whether Tesla can trade at $700 by July 2029, roughly three years from today.
Why Tesla Shares Are Stuck Despite Margin Recovery The market is worried about two things. First, Q4 2025 vehicle deliveries fell 16% YoY to 418,227 units and automotive revenue dropped 11%, so the core business is not obviously growing.
Second, operating expenses are surging. OpEx grew 37% YoY in Q1 2026 as AI R&D swallows every incremental dollar of gross profit. With a beta of 1.802, Tesla amplifies every macro wobble. Prediction markets currently assign a 70% probability to a down day today.
Wall Street Sees Almost No Upside. Our Model Sees More. Consensus is uninspired. The analyst target of $423.40 implies essentially zero return from today, with 5 Strong Buys, 18 Buys, 18 Holds, 4 Sells and 2 Strong Sells. That is 49% bullish, 38% neutral.
Our 3-year framework is more constructive. The base case lands at $488.85, the bull case at $627.76, with 90% confidence. Services revenue grew 42% YoY to $3.75 billion, and unsupervised Robotaxi rides just launched in Dallas and Houston. That is a different business than 2023 Tesla.
The Path to $700 Per Share Reaching $700 from today’s price of $419.77 would require a gain of 66.8%. With forward EPS of $1.90, a price of $700 implies a forward P/E of 368x. Our base case of $488.85 already implies 232x, meaning the bold target requires additional multiple expansion on today’s forward earnings.
That sounds absurd until you remember the number that matters is 2029 EPS, not 2026. If Cybercab, Tesla Semi, and Megapack 3 hit volume production in 2026 as management has guided, the forward multiple compresses naturally as EPS climbs.
Q1 2026 operating income of $941 million (+136% YoY) and record free cash flow of $6.22 billion for FY 2025 (+73.69% YoY) show the earnings engine is turning. Management stated that “hardware-related profits are expected to be accompanied by an acceleration of AI, software, and fleet-based profits.”
The primary risk is that Robotaxi expansion stalls under regulatory friction, with markets pricing only an 11.5% probability of a California launch by year-end 2026.
Where Tesla Trades Today vs Its Earnings Power At $419.77 against forward EPS of $1.90, Tesla trades at roughly 220x forward earnings. Shares sit 15% below the 52-week high of $498.83 and well above the 52-week low of $293.55.
Longer term, Tesla has returned 2,804.58% over the past ten years. The valuation only works if you underwrite AI, autonomy, and energy as separate profit streams by 2029.
Can Tesla Really Hit $700? My Verdict Hitting $700 by 2029 requires a 66.8% gain, and I think it is a stretch rather than a base case.
Three things need to go right: Cybercab and Semi reach real volume, Robotaxi scales beyond the current Dallas and Houston footprint, and automotive gross margin holds above 20%. A regulatory setback in the US or China derails the thesis. We’ve outlined the blueprint for how Tesla could reach $700 in 2029.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) and BYD (OTC:BYDDF) sit at opposite ends of the electric vehicle capital cycle. Tesla just posted Q1 revenue of $22.39B alongside surging AI spending, while BYD keeps compounding units and cash. The contrast has rarely been sharper, and the market is finally pricing it.
Robotaxi Theater Meets Export Reality Tesla’s Q1 FY2026 print showed automotive gross margin expanding to 21.1% from 16.2% and FSD active subscriptions of 1.28M, up 51% YoY. Yet operating expenses jumped 37% year over year on AI R&D and CEO stock-based comp, and free cash flow was just $1.44B against $2.49B in CapEx. That is a company funding a moonshot from a shrinking runway.
BYD, in contrast, entered 2026 with an upgraded export target of 1.5 million units, anchored by its vertically integrated Blade Battery supply chain. Shares are up 14.31% over the past week as global order visibility firms. Tesla, meanwhile, is down 10.41% year to date.
Capital Guzzler Versus Cash-Flow Compounder Tesla’s FY2025 capital story tells the tale. Operating cash flow of $14.7B was gutted by $8.5B in CapEx, and net income collapsed to $3.9B, down roughly 46% from 2024. Stock-based comp swelled to $2.8B. Management is now steering into a $25 billion 2026 CapEx budget that pushes free cash flow negative for the balance of the year.
Lens Tesla BYD Core Bet Robotaxi, Optimus, FSD subscriptions Vertically integrated EV exports Forward P/E 200 Materially lower on global consensus Key Vulnerability Capital burn, SBC dilution China tariff and geopolitical drag Tesla trades at a trailing P/E of 382 on operating margin of 4.2%. That valuation rests on promises rather than the hardware business underneath.
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The Next Test Is Whether Robotaxis Actually Ship Prediction markets are unusually blunt here. Polymarket traders assign only a 10.5% probability that Tesla launches robotaxis in California by December 31, 2026, and just 13% odds on an Optimus release by year end. That is a crowd calling the timeline aspirational. Analyst consensus target sits at $423, barely above the $402.90 close.
I will be watching whether Tesla can convert Cybercab pilot production into revenue before the CapEx bill lands. For BYD, the question is whether Europe and Southeast Asia absorb the export ramp without triggering fresh tariff walls.
Why the Setup Favors BYD Here If you want capital efficiency and units on the road today, BYD is the cleaner story. Its cash generation funds its own expansion, and the export ramp is happening in real time. Tesla still deserves a seat at the table if you believe in autonomy at scale, but paying 200 times forward earnings for that belief feels rich when insiders are net sellers and free cash flow is compressing. I would rather own the cash-flow-positive global scaler and revisit Tesla when the CapEx cycle breaks. Skepticism, in this pair, is the position.
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It's no secret that Tesla (TSLA 1.86%) is one of the most narrative-driven stocks in the market. The company's valuation hinges less on its revenue and profitability numbers, and more on whether investors believe it will successfully evolve into an artificial intelligence (AI) platform business with product lines spanning autonomous vehicles and humanoid robotics.
The bull case centers on Tesla scaling up its production of self-driving vehicles and proving that there is a market for its humanoid Optimus robots. These innovations aim to create entirely new revenue streams far larger than the electric vehicle (EV) and energy storage businesses that dominate its financials today.
On the other hand, the bear case emphasizes that those same projects have experienced repeated delays and are incurring mounting capital expenditures with little in the way of near-term returns, while Tesla's core EV business has yet to demonstrate durable pricing power or margin expansion.
Tesla's second-quarter earnings report is slated for July 22, and growth investors may be wondering how the stock will react to that data readout, particularly given the polarized views about Elon Musk's ambitious vision for the company.
Image source: Getty Images.
Tesla crushed Q2 EV delivery estimates, but questions remain Earlier this month, Tesla published its vehicle delivery figures for the second quarter. The company delivered 480,126 vehicles, comfortably ahead of the 406,024 consensus among sell-side analysts. All told, deliveries rose by 25% year over year and 34% sequentially. The company's energy storage deployments of 13.5 gigawatt-hours further underscored its momentum outside the EV business.
These figures were positive signals regarding Tesla's top-line automotive revenue. With nearly 74,000 more vehicles delivered than Wall Street expected, even conservative average selling prices should translate to a meaningful beat on automotive revenue.
However, the absence of pricing details means investors cannot yet fully judge whether accelerating revenue will translate into expanding gross margins. If a higher proportion of lower-priced vehicles were sold, or if leasing activity increased, that could have diminished the company's revenue upside.
How does Tesla stock usually react after an earnings report? The chart below illustrates Tesla's stock price action over the last three years. Earnings releases are indicated by the purple circles with the letter "E" in the middle. The trends reveal a consistent pattern of sharp reactions from the market each time Tesla's quarterly results and guidance are digested.
TSLA data by YCharts.
Shorter-term movements immediately after the company reports have tended to be particularly pronounced. Several earnings reports across 2024 and 2025 were followed by gains of 15% to 25% over the next 30 days when Tesla's guidance was viewed favorably. At other times, particularly when the stock was already near a peak, the reports triggered pullbacks of 10% or more within the next month.
The chart makes it clear that Tesla stock rarely trades sideways after an earnings report. The market's ongoing shifts in sentiment around autonomous vehicles and AI robotics tend to amplify the impact of any surprise -- positive or negative -- in management's commentary.
Where will Tesla stock trade after the next earnings report? Given that Q2's EV delivery beat is already public knowledge and the stock's tendency to make outsize moves, Tesla shares are likely to trade in a wide range in the days and weeks following the July 22 report.
I think a reasonable base-case forecast points to the stock fluctuating between roughly $365 and $455 over the next month. This means I think Tesla stock will decline by at least 10% by the end of July before any signs of recovery materialize.
Today's Change
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Keep in mind that downside pressure could easily intensify if Tesla's operating expenses or capex guidance point to continued heavy investment in AI infrastructure without corresponding near-term revenue visibility. Conversely, any talk from Musk that touches on robotaxi deployments, Optimus production, or progress toward Full Self-Driving could trigger another of the familiar narrative-driven surges that have repeatedly lifted the stock by double-digit percentages.
History shows that even a single optimistic remark from Musk about autonomous driving or AI can temporarily override the impact of a mixed financial performance and send Tesla stock sharply higher. However, smart investors understand the opposite is equally true: Conservative commentary about product timelines or profit margins can lead to heavy sell-offs.
For these reasons, investors should prepare for elevated volatility rather than a single decisive directional move once Tesla's full picture emerges later this month.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA, RIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In contrast to most other recent Wall Street analyst notes, RBC Capital’s Tom Narayan upgraded his outlook for Elon Musk’s electric vehicle (EV) company, Tesla (NASDAQ: TSLA), on July 7.
Specifically, the institutional expert assigned a ‘Buy’ rating for TSLA stock while increasing his 12-month price prediction from $475 to $500.
Notably, while the analyst estimated that the ‘Robotaxi’ represents a robust opportunity with a $4.2 trillion total addressable market, it would appear much of the lift can be attributed to a potential SpaceX (NASDAQ: SPCX) acquisition scenario.
Elon Musk has been implementing something of a company rollup as part of which his artificial intelligence (AI) company, xAI, acquired his social media firm, X, before itself getting bought by SpaceX ahead of the record-breaking initial public offering (IPO).
The process, started in earnest early in 2025, led some observers to speculate that the trillionaire’s biggest two companies could soon merge as well.
RBC Capital offers rare July bullish outlook for Tesla stock
Elsewhere, RBC Capital’s note appears to have followed a different approach from most other Wall Street analysts. Out of the five notable revisions provided in July, four – all except for Narayan’s – positioned Tesla stock as a ‘Hold.’
Among them, Morgan Stanley’s (NYSE: MS) Andrew Percoco was the most bearish, having forecasted TSLA shares would stand at $415 in 12 months on July 6, while JPMorgan’s (NYSE: JPM) Rajat Gupta was the most optimistic of the ‘Neutral’ experts with a $475 forecast on July 7.
The overall souring of the mood can arguably be attributed to an overall decline in Tesla’s core car business, shifting goalposts for the ‘Robotaxi,’ and the overall downward stock market performance of the EV maker in 2026.
Specifically, TSLA shares are, at their latest closing price of $402.90, 8.03% down year-to-date (YTD).
Tesla stock price YTD chart. Source: Google Analysts set Tesla stock price target for the next 12 months Lastly, the overall July balance of ratings is largely in line with the wider Wall Street attitude toward Elon Musk’s car company. Tesla is generally considered a ‘Hold’ by institutional analysts, with 15 out of the 28 experts who voiced their opinions in the last three months seeing it as such.
Wall Street sets Tesla stock price target for the next 12 months. Source: TipRanks Additionally, TSLA stock is, on average, expected to retrace 0.79% to $399.71 in the next 12 months, per the data Finbold retrieved from TipRanks on July 8, 2026.
Featured image via Shutterstock
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Tesla stock NASDAQ:TSLA remained under pressure as Wall Street debated whether a future tie-up with SpaceX could reshape the company’s valuation story.
TSLA closed around $402.90, down over 4% on Tuesday and was red in pre-market trading on Wednesday.
The downward push came despite recent delivery data improving sentiment around the electric-vehicle maker.
The new debate is bigger than cars.
After SpaceX’s record $75 billion IPO at a $1.77 trillion valuation, investors are asking whether Elon Musk’s companies could eventually be folded into one broader AI, robotics, energy, transport and space platform.
JPMorgan is not dismissing the Tesla-SpaceX merger idea, but the firm is also not treating the possibility as a simple reason to buy Tesla stock.
JPMorgan analyst Rajat Gupta said a combination would be “strategically coherent on paper.”
The logic is easy to understand as Tesla brings electric vehicles, batteries, autonomy software and robotics.
SpaceX brings launch systems, Starlink, satellite infrastructure, space-based AI ambitions and deep government-linked aerospace capabilities.
Together, they would look less like two separate Musk companies and more like a single industrial technology platform.
The problem comes at execution stage as Gupta flagged substantial regulatory and jurisdictional hurdles, with China standing out as a key complication.
Tesla has major manufacturing and sales exposure in China, while SpaceX operates in sensitive areas such as satellites, defence-linked infrastructure and space communications.
That mix could make approvals politically difficult.
That is why the JPMorgan note reads more like an “interesting thesis” than a clean buy signal.
Gupta kept a Hold rating on Tesla, while Wall Street’s broader view also remains cautious, with a Hold consensus and an average price target of $399.71, slightly below recent trading levels.
The JPMorgan call gives bulls a new story to trade, but it also gives sceptics a fresh reason to worry about governance, regulation and execution risk.
RBC Capital Markets is taking a more constructive view.
RBC analyst Tom Narayan raised his Tesla price target to $500, incorporating a 25%-30% premium to current trading levels based on a potential SpaceX acquisition scenario.
Narayan’s argument is that closer collaboration between the two companies could unlock value across compute hardware, energy storage, AI training and large-scale infrastructure.
That gives investors a clear bull-versus-cautious split. RBC sees a possible valuation unlock, while JPMorgan sees strategic coherence, but also major complexity.
The analyst's logic may support the long-term “Musk ecosystem” bull case, but it clearly does not settle the buy-now debate.
For TSLA to look more compelling in July, investors need confirmation from Q2 earnings that Tesla’s core business, energy segment and AI ambitions are strengthening, not just another speculative merger angle.
The long-wheelbase Model Y L adds a usable third row with a negligible range penalty, but its $61,990 Launch Series price undercuts no one.
Tesla Stretches Its Model Y for a Roomier Third Row, Extending the Price Even More Why now? What's different from the standard Model Y Fighting on two fronts Tesla has added an actual, reasonable third row of seats to its Tesla Model Y. The automaker brought a long-wheelbase variant of the Model Y electric SUV to its US lineup, shoring up a gap in its fleet and bracing the brand against new electric SUV competition.
The Model Y L Premium Launch Series quietly opened for order at Tesla's website and dealerships last week, priced at $61,990 for the new six-seat configuration.
This longer Model Y isn't exactly new to the world -- it originally debuted as a Chinese exclusive model in mid-2025 -- but this is the first time it'll be available in North America.
Why now? Earlier this year, Tesla announced its intent to discontinue its three-row Model X electric SUV alongside the Model S sedan, refocusing its Fremont, California, factory on the development of its Optimus humanoid robot. Sunsetting the Model X leaves Tesla with nothing to challenge the Rivian R1S, Kia EV9, Hyundai Ioniq 9 and Cadillac Vistiq in the highly lucrative full-size, three-row SUV class. Meanwhile, Rivian's new R2 just pulled up into the midsize electric SUV space, ramping up deliveries to customers last month and boasting more space for people and cargo than Tesla's Model Y.
Enlarge Image
The Model Y L adds about 6 inches to the midsize SUV's wheelbase.
TeslaBringing the existing long-wheelbase Model Y L here, to Tesla's home market, allows the automaker to shore up the shortcomings on two fronts (both a true three-row and midsize SUV) with one car, without incurring outsized R&D costs and with minimal factory retooling. Beyond a mild facelift, the Model Y chassis hasn't been updated significantly since its 2019 debut, so this isn't the most exciting move for those hungry for the next new thing from Tesla.
What's different from the standard Model Y The L stretches the Model Y platform in three dimensions. Overall, the EV is around 7.6 inches longer than the now-familiar SUV at 195.9 inches bumper-to-bumper and 1.7 inches taller (65.7 inches). More difficult to tell from the curbside, the Model Y L is also around 212 pounds heavier, tipping the scales at around 4,600 pounds. Most significantly, the EV's wheelbase grows by 5.8 inches to 119.7 inches between the axles.
Tesla Model Y L compared
Tesla Model Y PremiumRivian R2Tesla Model Y L Rivian R1sWheelbase 113.9 in115.6 in119.7 in121.1 inLength 188.6 in185.9 in195.9 in200.8 inHeight 64.0 in66.9 in65.7 in77.3 in That extra wheelbase opens up a proper third row for passengers and more room for cargo (89 cubic feet vs. 76 for the standard wheelbase. This longer Y isn't much wider, so rather than a cramped seven-seat bench configuration, Tesla went with a 2+2+2, six-seat layout with second-row captain's chairs. The first two rows have heated and ventilated seats. The second row gets its own 8-inch touchscreen, while the front display grows to 16 inches, matching the updates that came to the Model Y Performance earlier this year.
The new third-row seats are a bit more economy class than the rest, lacking temperature-controlled surfaces or access to a screen. Still, I'd reckon they're a step up over the optional (and uncomfortable) jump seats that fold out of the standard model's cargo floor. At the very least, wayback riders now get their own dedicated speakers -- with 18 drivers overall now versus the standard model's 15 speakers -- and air vents.
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With more space inside, Tesla opted for captain's chairs for the second-row passengers.
TeslaUnder the hood, so to speak, the Model Y L Launch Series is a Premium AWD model with a little extra around the midsection. Its dual-motor setup outputs an estimated 514 hp and 435 pound-feet of torque (590 Nm) and is powered by the same roughly 80-kilowatt-hour battery as its smaller sister. Tesla and the US EPA estimate a range of 325 miles. That's only around 2 miles less than the standard Model Y Premium AWD. Oddly, the Y L claims a 4.4-second 0-60 mph sprint, which is about two-tenths quicker than the standard Model Y AWD despite the added mass. Weird.
The Y L continues to differentiate itself from the standard Y with the inclusion of vehicle-to-load bidirectional power (120V/20A AC when used with its charge port outlet adapter) and an electronic continuously variable suspension, which promises a more premium ride than the standard passive dampers. Owners will also be able to try out Tesla's Full Self-Driving (Supervised) driver aid tech for 12 months instead of the normal 1-month trial. (Though the $99 per month thereafter is the same.) It's unclear, however, whether these equipment and feature differences are specific and unique to the debut or will be carried through to future non-Launch Series examples.
Enlarge Image
The more spacious third row is still economy class compared to the first two rows, but should be an improvement over the old jump seats.
Tesla Fighting on two fronts The $61,990 Launch Series Model Y L also arrives with special badging and graphics, inside and out, unique puddle lights, door-sill plates and suede dashboard trim. Even with these touches and the aforementioned extra equipment, the price is steep compared to the standard Model Y Premium AWD ($49,990). This initial batch will likely be followed by less expensive Standard and Premium configurations, but Tesla hasn't announced these post-Launch Series Model Y L models or how much they will eventually cost.
For $57,990, the new Rivian R2 Launch Package undercuts the Model Y L on price while offering similar range and features. Over the coming months, the R2 lineup will be joined by even more affordable trim levels, eventually reaching as low as $48,490 for the R2 Standard in 2027. That said, the Tesla Y L is also a larger three-row family hauler that doesn't necessarily directly compete with the R2 -- it slots in somewhere between the R2 and larger R1S ($83,990) in most dimensions and specs.
That makes cross-shopping the Tesla with other three-row EVs a bit more complicated, but it also means shoppers have a wider range of choices when choosing the right-size vehicle for their needs.
Antuan started out in the automotive industry the old-fashioned way, by turning wrenches in a driveway and picking up speeding tickets. He now has nearly 20 years of expertise and experience behind the wheel of hundreds of cars, including electric, hybrid, plug-in hybrid, hydrogen, and traditional combustion vehicles. For each car he tests, Antuan covers more than 200 miles behind the wheel and evaluates driving dynamics; acceleration and braking performance; range; and efficiency. Antuan's goal is to use his extensive car knowledge to educate CNET readers and help with their next car-related buying decision. Whether you're EV-curious, an EV-enthusiast or a combustion-car loyalist, Antuan will bring you the unbiased advice, reviews, best lists and news you need. You can reach Antuan at [email protected]
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Antuan started out in the automotive industry the old-fashioned way, by turning wrenches in a driveway and picking up speeding tickets. He now has nearly 20 years of expertise and experience behind the wheel of hundreds of cars, including electric, hybrid, plug-in hybrid, hydrogen, and traditional combustion vehicles. For each car he tests, Antuan covers more than 200 miles behind the wheel and evaluates driving dynamics; acceleration and braking performance; range; and efficiency. Antuan's goal is to use his extensive car knowledge to educate CNET readers and help with their next car-related buying decision. Whether you're EV-curious, an EV-enthusiast or a combustion-car loyalist, Antuan will bring you the unbiased advice, reviews, best lists and news you need. You can reach Antuan at [email protected]
Expertise Nearly two decades of testing, driving, reporting on, writing about, reviewing, and editing content about electric and ICE cars. Category focus is on electrified cars, EVs, HEVs, PHEVs, ICE cars, EV infrastructure, EV chargers, EV adapters, EV news, auton Credentials
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In the latest close session, Tesla (TSLA - Free Report) was down 4.02% at $402.90. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.16%.
The electric car maker's stock has climbed by 2.65% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 5.02% and outpacing the S&P 500's gain of 2.14%.
The upcoming earnings release of Tesla will be of great interest to investors. The company's earnings report is expected on July 22, 2026. The company's upcoming EPS is projected at $0.46, signifying a 15.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.47 billion, indicating a 8.76% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.01 per share and revenue of $101.25 billion. These totals would mark changes of +21.08% and +6.77%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.14% higher. Currently, Tesla is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Tesla currently has a Forward P/E ratio of 208.52. This denotes a premium relative to the industry average Forward P/E of 18.85.
We can additionally observe that TSLA currently boasts a PEG ratio of 9.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
ToplineElon Musk’s net worth dropped more than $50 billion Tuesday as SpaceX shares tumbled, even as Wall Street banks raved about the rocket maker’s potential, including one that praised Musk’s firm’s potential impact on humanity as “bigger than any company’s we’ve ever seen.”
Shares of the rocket maker hovered over their debut price, even as Wall Street lauded the firm's potential.
Getty Images
Key FactsShares of SpaceX plunged by nearly 7% Tuesday to below their $150 debut price, while Tesla shares dropped by more than 4%.
Musk, who holds 4.8 billion SpaceX shares and another 350 million stock options, as well as roughly 700 million Tesla shares, had his net worth cut by $58.2 billion as a result, dropping it to $941.2 billion.
Several investment brokers opened coverage of SpaceX’s stock on Tuesday, the most bullish of which came from Raymond James analyst Brian Gesuale, who wrote his firm believed SpaceX was building the “foundational platform for the next generation of industrial capacity.”
“SpaceX’s ambitions, and potential impact on humanity, are bigger than any company’s we’ve ever seen,” JPMorgan analysts wrote.
surprising factJPMorgan analyst Rajat Gupta cast doubt on a possible merger between Tesla and SpaceX, writing that a tie-up between Musk’s firms is “strategically coherent on paper” and that their businesses would complement each other, but regulatory approval would prove difficult.
crucial quote“Just as railroads, electric grids, and the internet reshaped prior economic eras, we believe SpaceX is building the foundational platform for the next generation of industrial capacity,” Gesuale wrote.
big number$800. That’s Raymond James’ price target for SpaceX shares, a roughly 500% surge above its IPO price that would swell the company’s market valuation well above $10 trillion. Arete Research set a $401 price target, while Morgan Stanley set a $300 target and Goldman Sachs a $205 goal. On average, brokers expect SpaceX shares to be worth $236.
key backgroundMusk’s fortune has dropped by more than $500 billion since peaking at $1.45 trillion last month. His net worth plummeted as SpaceX shares lost momentum after a record-setting IPO, and Musk briefly lost his trillionaire status after Forbes cut $116 billion of his restricted Tesla stock from estimates of his wealth. He has since buoyed above and below the trillion-dollar threshold over the last week, even as more analysts offer bullish takes for SpaceX’s growth potential. Wedbush Securities analyst Dan Ives, a consistent bull for Tesla, called SpaceX “one of the most differentiated assets within the tech market” last week and argued Musk’s firm is “well-positioned to become a major hyperscaler” across connectivity, rocket launches and AI infrastructure.
further readingForbesMusk Is A Trillionaire Again: SpaceX And Tesla Boost Net Worth By $60 BillionBy Ty Roush
SpaceX Short-Term vs. Long-TermWoods told readers of his weekly newsletter and anyone who asked for advice on the SpaceX IPO, including his father, to make their allocations smaller than they would have liked.
"I think the valuation and the pre-market valuations, they scare me," Woods told Benzinga. "I think there are going to be a lot of people looking to cash out and that’s why I didn’t want it to go into the (S&P 500) index."
Woods said early inclusion in the S&P 500 may have forced buying and made the stock even more volatile at IPO, with people cashing out profits early.
The market expert is far from a SpaceX bear, telling Benzinga he believes the company is "here to stay."
"It’s going to be the biggest grower over time."
Woods said Starlink alone could be a trillion-dollar business.
"If you believe in Elon Musk, you don’t bet against him."
Woods is cautious on the stock keeping its valuation high in the short term after the IPO, telling Benzinga past successful large-cap IPOs have shown that investors get better opportunities to buy into the stock later on.
"I think any long-term investor, you want to buy the stock, put it away, don’t look at it."
Woods highlights Aug. 11 and quarterly earnings for SpaceX as a test, along with several lock-up periods.
"I don’t think this is something we have to rush into. I think there’ll be better opportunities."
Woods said SpaceX likely needs a couple of quarters of financial results as a public company before investors can get too optimistic and get away from the hype brought about by the company’s S1 filing.
"They’ll come back to Earth at some point. Yes, puns intended."
Woods said the $135 IPO pricing range could even get tested and give investors another chance to buy at that level.
"This stock will eventually double from where it is. But I don’t know the time frame as to when that will happen and I think there are better opportunities right now for a trader than to be in space."
SpaceX Index InclusionAhead of SpaceX’s IPO, Woods was vocal about long-standing indexes like the S&P 500 not changing their rules to speed up inclusion or change the requirements for a company to become a member.
"I think you know we have standards for a reason," Woods tells Benzinga. "I understand the market cap really calls into question that maybe there should be a special category. But, let them have this as a goal and guide."
Woods said that SpaceX doesn’t meet the profitability or float requirements that other companies had to meet to be included in the S&P 500.
"When you’re floating such a small amount of share, you’re not utilizing an inclusion into an index to help expand your float. And that to me was just wrong on that grounds."
The market expert recalled Tesla Inc (NASDAQ:TSLA) going down the same road, needing to hit profitability to be included in the S&P 500.
Woods said he doesn’t like the Nasdaq changing its rules, with SpaceX set to join the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ) on July 7.
"The Nasdaq 100 is a very iconic place to be in," he added.
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Tesla (TSLA) is facing renewed scrutiny after a Texas man was charged with manslaughter following a Model 3 crash into a home that killed a 76-year-old woman.Mi
HomeIndustriesAerospace/DefenseSome on Wall Street see an increasing likelihood that Elon Musk’s two biggest companies will combineJuly 7, 2026, 1:28 p.m. ET
Wall Street is increasingly entertaining the possibility of a merger between Elon Musk’s biggest companies, even if it wouldn’t necessarily be easy to pull off.
Tesla TSLA and SpaceX SPCX have been working together for years, although their relationship has deepened recently. In March, Musk announced that Tesla would work with SpaceX on a project aimed at developing a factory capable of making one terawatt per year of compute hardware.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
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Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Tesla (TSLA - Free Report) Over the years, electric vehicle (EV) maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space like Amazon changed the retail landscape and Netflix revolutionized entertainment. Tesla, which managed to garner a gold-standard reputation over the years, is now a far bigger entity than it was at the time of its IPO in 2010. However, with growing competition, Tesla's market share in battery-powered electric car sales in the United States has eroded to around 50%, from roughly 80% in 2020.
On August 29, 2024, TSLA was added to the Focus List at $205.75 per share. Shares have increased 104.02% to $419.77 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.01. TSLA boasts an average earnings surprise of 5.5%.
Earnings for TSLA are forecasted to see growth of 21.1% for the current fiscal year as well.
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Tesla (NASDAQ:TSLA | TSLA Price Prediction) keeps proving that investors can become fixated on the wrong metric. Every quarterly delivery report sparks debate over electric vehicle demand, price cuts, and market share. Its recent expansion of the Cybercab robotaxi service into Miami only reinforced that narrative, with Morgan Stanley forecasting Tesla could operate a fleet of roughly 30,000 robotaxis by 2030.
Those developments matter, but they may not be the biggest reason to own the stock. While headlines remain centered on cars, Tesla has been quietly building another business that could benefit from one of the world’s largest investment themes: modernizing the electric grid.
Tesla’s EVs Still Grab the Spotlight Tesla recently delivered more vehicles than many analysts expected, easing concerns that slowing EV demand would pressure growth throughout 2026. The company’s rollout of its Cybercab robotaxi service into Miami also demonstrated that autonomous transportation remains a central part of Elon Musk’s long-term vision.
Yet, autonomous driving still faces regulatory hurdles, technology risks, and competitive pressure from rivals including Alphabet‘s (NASDAQ:GOOG) Waymo and other emerging players.
Investors, though, should look beyond the vehicles themselves. Whether Tesla sells EVs to individual drivers or deploys them in a ridesharing fleet, both businesses ultimately compete in mature transportation markets. The opportunity investors may be underestimating sits elsewhere.
tsla
Energy Storage is Becoming a Second Growth Engine Tesla’s first-quarter shareholder update showed energy storage deployments declined 15% year over year. At first glance, that looked like a warning sign, but management explained the decline reflected the timing of large utility-scale projects rather than weakening demand. Megapack installations are tied to customer construction schedules, permitting timelines, and grid connections. Unlike vehicle sales, these projects do not arrive evenly throughout the year.
That explanation already appears to be playing out. Tesla just announced a Megapack agreement with Esyasoft, an Indian digital platform for utility grid management and electrification. The deal is worth as much as $3 billion to deliver more than 15 gigawatt-hours (GWh) of battery energy storage systems across the U.K., Western Europe, the Gulf Cooperation Council, and India.
According to Tesla Energy & Charging Vice President Mike Snyder, Tesla’s vertically integrated approach allows the company to streamline projects from design through operation while accelerating deployment of modern grid infrastructure.
The deal also fits a much larger trend. According to Tesla observer Sawyer Merritt on X, more than $9 billion worth of new Tesla Megapack projects totaling over 43 GWh have been announced during the past six weeks. The Basenor blog also highlighted a growing list of recent Megapack wins spanning utilities and commercial customers across multiple continents.
Just this year, Tesla energy has:
Secured the first phase of a program with NatPower to build 25 GWh of storage across Italy and Britain, while targeting over 100 GWh over 20 years. Potential revenue could exceed $15 billion. xAI purchased an $269 million of Megapack product, for a total of over $1 billion worth since 2024. Signed an $80 million order with Belgium’s Energy Solutions Group for a 76 MW / 304 MWh system, with an eye toward a 2027 grid connection. That isn’t the pattern of a business losing momentum. It’s the pattern of one whose revenue arrives in waves.
The Grid May Be Tesla’s Largest Addressable Market Battery storage solves one of renewable energy’s biggest problems: balancing electricity supply when the sun isn’t shining or the wind isn’t blowing. Utilities worldwide are investing billions to strengthen aging grids while supporting AI data centers, electrification, and rising electricity demand. Tesla’s Megapack business sits squarely at that intersection.
Some investors continue to speculate that Tesla could eventually merge with SpaceX (NASDAQ:SPCX), creating another catalyst for the shares. Unless and until that happens, however, Tesla already has a powerful growth engine operating in plain sight.
Key Takeaway In short, Tesla’s EV business and robotaxi ambitions deserve attention, but they may no longer define the company’s largest long-term opportunity. Delivery numbers will continue moving the stock quarter to quarter, while Cybercab could reshape transportation over time. Yet the energy business is quietly building a multibillion-dollar backlog supported by global grid modernization.
Smart investors should keep watching vehicle deliveries, but they should pay even closer attention to Megapack orders. The numbers increasingly suggest Tesla is becoming as much an energy infrastructure company as it is an automaker.
The headline number cuts through the noise around Tesla (NASDAQ:TSLA | TSLA Price Prediction) faster than any product roadmap can. It is the price tag investors have chosen to hang on the entire enterprise, and Q1 finally gave the bulls a fresh reason to defend it.
The Number Tesla’s market capitalization sits at roughly $1.48 trillion as of July 2, 2026, built on 3.76 billion shares outstanding and a trailing P/E of 383. That valuation is what makes the $500 billion question so sharp: how much of this trillion-dollar-plus market cap is priced for a car company, and how much is being paid up front for AI, robotics, and autonomy that has yet to show up on the income statement?
What It Means On the surface, Tesla’s multiple looks stretched against the fundamentals. Full-year 2025 revenue came in at $94.83 billion, down 2.93% year over year, with net income of $3.794 billion after a 46.79% annual decline. Return on equity is 4.89%, gross margin is 18.03%, and the PEG ratio of 6.23 sits well above the 1.0 line typically used as a fair-value marker.
I think tesla’s Q1 2026 quarter changed the arithmetic of the argument. The company’s revenue rebounded to $22.39 billion, up 15.78% year over year. EPS came in at $0.41, topping consensus expectations by 14.14%. Automotive gross margin expanded to 21.1% from 16.2%. Operating income jumped 135.84% to $941 million, and free cash flow rose 117.47% to $1.444 billion. Cash on the balance sheet climbed to $44.743 billion, up 173.62% from a year earlier.
Market Reaction The stock has not confirmed the fundamental turn. Shares closed at $393.45 on July 2, 2026, down 7.49% on the day, down 12.51% year to date, and down 7.15% over the past month. Over one year, however, shares are still up 24.65%, and over ten years, up 2,625.98%.
Bull Case The bull argument for Tesla now rests on three data points that showed up together for the first time in a year. Margin expansion is real, with 490 basis points of automotive gross margin recovery in a single quarter. Operating leverage is returning, with 136% operating income growth on 15.78% revenue growth is the definition of an inflection. And the company’s software lineup is starting to matter, as Tesla’s Services & Other revenue reached $3.745 billion, up 42% year over year, powered by 1.28 million active FSD subscriptions, up 51% year over year.
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The forward pipeline adds ballast. Management placed Cybercab, Tesla Semi, and Megapack 3 on schedule for volume production in 2026, and confirmed Optimus production lines are being installed at Fremont and Gigafactory Texas. On Tesla’s Q1 call, Elon Musk said unsupervised FSD revenue “will be material probably in a significant way next year” and described Optimus as “probably the biggest product ever”. CFO Vaibhav Taneja set 2026 capital expenditure at over $25 billion.
Notably, analyst consensus target price sits at $421.16, with 23 Buy, 18 Hold, and 6 Sell ratings.
Bottom Line For long-term holders, Q1 2026 is the first quarter in the last four where growth, margin, and cash flow moved in the same direction. That does not resolve the valuation debate at a forward P/E of 217 against a 4.48% ten-year Treasury yield, and prediction markets remain skeptical on the near-term catalysts, pricing a California robotaxi launch at 22% and Optimus release by year-end at 10%.
The bull case is that the trillion-dollar tag stops being a question and starts being an base once software, energy, and robotics revenue compound on top of an auto business whose margins just found their footing. The next reading arrives with the Q2 report, and after Q1, the bar has shifted from whether Tesla can grow to whether it can keep doing it.
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Tesla (TSLA 2.89%) is a leader in the electric vehicle (EV) market, and a key metric many investors often look for is how many deliveries it made during the past quarter. Strong delivery numbers can be a great sign of rising demand and that the business is doing well.
Recently, however, Tesla reported its delivery numbers, which blew past expectations, and yet, that didn't give the stock a boost. It even fell on the news. What's going on with the stock, and could its weakness this year make for a great buying opportunity, or could it fall even lower?
Image source: Getty Images.
Why strong delivery numbers may not be enough to give the stock a boost Last week, Tesla reported its delivery numbers for the second quarter, which came in at 480,126. That's significantly higher than the 406,600 that analysts were expecting. It's a massive beat on the key metric, but the stock still fell by nearly 8% the day the numbers came out. A year ago, its deliveries for the quarter were 384,122, which means these latest figures indicate a 25% increase.
While the news wasn't bad, it may have reminded investors that Tesla's core business is EVs and will be for the foreseeable future. Although that may seem obvious, the stock doesn't trade like an EV stock but rather an artificial intelligence stock, with CEO Elon Musk's focus largely on robots and visions that go far beyond EVs. Plus, the company has been offering lower-priced vehicles to be more competitive. This means that while it may generate more revenue from greater deliveries, that may not necessarily translate into huge profit growth, given its tighter margins.
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Is Tesla's stock a good buy on weakness right now? Tesla's stock is down close to 20% from its 52-week high as investors have become more bearish on the company in light of its worsening results. Last year, the company's profit of $3.8 billion was nearly half of the $7.1 billion it reported a year earlier, and down drastically from a $15 billion profit in 2023.
Shrinking profits have made the stock more expensive relative to earnings, with the stock trading at a price-to-earnings ratio of more than 370. It's a massive premium, underscoring just how much optimism is priced in and how high expectations are for the future. Tesla's EV business may be driving its revenue and profit, but not its sky-high valuation. At such a high premium, investors are taking on significant risk with Tesla's stock, as there is plenty of room for it to fall much lower.
Tesla (TSLA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this electric car maker have returned +2.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Automotive - Domestic industry, to which Tesla belongs, has gained 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Tesla is expected to post earnings of $0.46 per share, indicating a change of +15% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.01 points to a change of +21.1% from the prior year. Over the last 30 days, this estimate has changed +2.1%.
For the next fiscal year, the consensus earnings estimate of $2.58 indicates a change of +28.4% from what Tesla is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tesla.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Tesla, the consensus sales estimate for the current quarter of $24.47 billion indicates a year-over-year change of +8.8%. For the current and next fiscal years, $101.25 billion and $113.49 billion estimates indicate +6.8% and +12.1% changes, respectively.
Last Reported Results and Surprise HistoryTesla reported revenues of $22.39 billion in the last reported quarter, representing a year-over-year change of +15.8%. EPS of $0.41 for the same period compares with $0.27 a year ago.
Compared to the Zacks Consensus Estimate of $21.92 billion, the reported revenues represent a surprise of +2.12%. The EPS surprise was +13.89%.
Over the last four quarters, Tesla surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tesla is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tesla. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Tesla (TSLA +6.70%) is scheduled to report second-quarter earnings after market close on July 22. As usual, Tesla's earnings arrive against a backdrop of already reported vehicle deliveries.
Since the company has moved past its usual quarterly delivery update, the market now has time to digest some cursory business trends before the full financial picture emerges. This invites a closer look at what really matters for Tesla's operating results and whether the stock's recent behavior offers clues for what might happen next.
Image source: The Motley Fool.
What is Wall Street expecting for Tesla's upcoming earnings report? Current consensus estimates forecast Tesla's revenue at around $25.4 billion and EPS at $0.48 for the second quarter. Beyond revenue and earnings, investors will surely scrutinize Tesla's automotive gross margins for signs of pricing pressure or cost discipline, the pace of expansion in the energy storage business, and any incremental discussion of free cash flow and capital expenditures.
Commentary on progress around Full Self-Driving (FSD) or future product timelines for the robotaxi and Optimus will likely surface as well. However, the immediate reaction to Tesla stock post-earnings tends to hinge on whether the company beats or misses the revenue and profit expectations already set.
Did Tesla beat Q2 delivery expectations? On July 2, Tesla published that it delivered roughly 480,000 vehicles during the second quarter, comfortably ahead of the 406,000 units analysts had modeled and up about 25% from the same period last year.
The beat ends a stretch of softer-than-expected volume comparisons and may finally point to improving demand. Because vehicle deliveries translate directly into automotive revenue, the strong performance increases the likelihood that Tesla's top line will exceed expectations. At the same time, smart investors understand that volume surges can leave open questions about average selling prices and any product mix shifts that could influence profitability.
Is Tesla stock a buy before earnings? When Tesla reported deliveries on July 2, shares actually fell sharply by as much as 7%, marking one of the stock's weakest days in nearly a year. Even though Tesla's results were impressive, the decline occurred because much of the positive momentum had already been reflected in the price during the preceding weeks.
Markets have a tendency to price in optimistic scenarios before an event actually occurs. Traders took profits once the good news was actually confirmed.
I think a comparable dynamic could easily play out after the full earnings release. A clean beat on revenue and EPS might produce a muted or even negative reaction if management's guidance falls short of delivering fresh, measurable catalysts. This is why timing the market around any single quarterly report is a fool's errand.
Tesla appeals to investors who see value in the eventual scaling of robotaxis and humanoid robots. However, neither of these initiatives contributes meaningfully to Tesla's business today.
TSLA PE Ratio data by YCharts
For most investors, Tesla functions primarily as an expensive momentum stock whose current valuation rests more on hype than on tangible near-term financial payoffs from the company's moonshot bets. The company's upcoming earnings report is unlikely to resolve these broader tensions one way or the other.
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Tesla has released its new summer collection of accessories. Tesla Tesla is selling new summer-y gear to existing owners.
The EV maker recently updated its online shop with a collection of in-car summer accessories and lifestyle gear. The add-ons include a $595 dual-zone fridge that fits into the Model Y's sub-trunk, a rear-attaching tent for the Cybertruck, and fitted air mattresses for the Model 3 and Cybertruck.
Several products — including the fridge, air mattresses, and a foldable chair — are out of stock, according to the website.
Tesla has released new items on its online shop in the U.S.
• Model Y Dual Zone Fridge: $595. Operates from 0°F to +68°F
• Model Y Canopy: $165
• Cybertruck Air Mattress: $295
• On the Road Chair: $125
• Tesla Electric Summer Party Tee: $35
• Tesla Electric Summer Tee: $35… pic.twitter.com/S7MRkosAxD
— Sawyer Merritt (@SawyerMerritt) July 3, 2026 On one level, the collection is a classic summer-commerce play: Americans are roadtripping and heading to the beach as much of the country swelters through extreme heat.
But the accessories also say something bigger about Tesla's approach and manufacturing strategy. The automaker has increasingly leaned on its existing vehicles — especially the Model Y. Like FSD subscriptions, custom-fit accessories let Tesla squeeze more revenue and brand loyalty from its existing customers after the car's initial purchase.
The accessories also play into Tesla's manufacturing advantage. The company builds a small number of vehicle models and trims compared with legacy automakers, making it easier to design accessories for standardized interiors, trunks, power outlets, and cargo areas.
The timing of the summer collection's release is notable. While Tesla beat sales estimates in its recent quarter, the automaker is facing fresh competition from punchy EV challengers that are leaning into utility, customization, and lifestyle. Rivian has begun delivering the R2, its Model Y competitor, to public customers, while Slate says its highly customizable electric trucks will be in customers' hands by the end of the year.
Tesla also recently added the Model Y L, a $61,990 six-seat version of its best-selling SUV, to its US lineup, following the discontinuation of the three-row Model X earlier this year.
Tesla didn't immediately respond to a request for comment from Business Insider.
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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
Tesla (TSLA +6.70%) reported significant growth in EV deliveries in its most recently completed quarter.
*Stock prices used were the afternoon prices of July 3, 2026. The video was published on July 5, 2026.
Parkev Tatevosian, CFA has the following options: long December 2026 $320 puts on Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Tesla (TSLA +6.70%) Robotaxis began picking up passengers in Miami on Friday -- the company's first market outside Texas and California. The service begins modestly, in a geofenced slice of western Miami-Dade County reportedly running from West Miami toward Doral, with downtown and Miami Beach left out for now.
The day before, Tesla reported 480,126 second-quarter deliveries, up about 25% year over year -- and the stock fell 7.5% anyway. But the stock is regaining some ground on Monday as investors hope the company's Robotaxi business may begin to gain steam.
Is the Robotaxi business scaling fast enough to be that something?
Cybercab. Image source: Tesla.
The map is filling in The Robotaxi service is barely a year old. Tesla launched it in Austin last summer with safety monitors aboard, began removing them, and has been layering on markets since. Miami is a sensible next test bed, too: flat roads, year-round driving weather, and heavy visitor traffic that leans on ride-hailing.
Notably, Miami extends the Robotaxi footprint beyond Tesla's home states for the first time. According to the company's first-quarter update, Tesla lists Austin, Dallas, and Houston as ramping unsupervised, operates with safety drivers in the San Francisco Bay Area, and lists Miami, Orlando, Tampa, Phoenix, and Las Vegas as markets with preparations underway. Friday converted the first of those five from planned to live.
But Tesla still hasn't yet reached meaningful scale -- at least not enough to significantly enhance the bull case for the stock. The Austin fleet is still reportedly measured by the dozens of vehicles, with the unsupervised portion of this fleet smaller still. And early riders across markets have described long waits and occasional software misfires. Additionally, availability remains limited to specific service areas in Tesla's dedicated Robotaxi app -- another sign this remains a controlled rollout rather than a mass-market service.
What a city launch can't fix The market's frustration that has left shares in the red for the year arguably isn't about Tesla's expanding Robotaxi service. The company's first-quarter operating margin was just 4.2%, on revenue that grew 16%.
Additionally, the stock's valuation remains difficult to justify. With $1.10 in earnings per share over the past 12 months, the stock trades at more than 380 times earnings -- a price that arguably makes sense only if autonomy becomes a large, profitable business on a reasonable timeline. Growth in the teens isn't what investors are paying for. Autonomy is.
Ultimately, a launch in Miami shows progress. But investors still need more concrete evidence to know Robotaxi can become material to results soon. Tesla hasn't disclosed Robotaxi revenue, ride volumes, utilization, or per-mile costs. Investors, therefore, are still mostly left in the dark.
We'll likely know more on July 22, when Tesla is scheduled to report earnings. If Tesla opts to provide more data on the Robotaxi program and more details about its plans and its potential economics, investors will have more data points to gauge just how much this Robotaxi business may be worth to the overall business.
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So, can Miami rescue the stock?
Based on the stock's sharp rebound on Monday, the initial phases of a rescue may already be underway. But shares are still down almost 7% year to date. To fully recover, Tesla will likely need more upbeat news on its Robotaxi program -- news that starts making it sound like the program will soon start contributing meaningfully to Tesla's financial results.
The rollout cadence is encouraging -- five markets live and four more queued -- and Tesla is executing the expansion it laid out for investors. But with a price-to-earnings ratio of about 380, the growth stock needs autonomy to start showing up in the financial statements, not just on maps.
