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Speculation is growing among investors that Elon Musk will merge his rocket and EV companies. SERGIO FLORES/AFP via Getty Images Whispers that Elon Musk might combine Tesla and SpaceX are growing — and investors want answers.
Shareholders took to an online Tesla investor forum to submit questions for executives ahead of the company's second-quarter earnings and clamor for more details about a rumored merger with SpaceX.
"Will SpaceX merge with Tesla?" asked one retail investor, in a question representing around 100,000 Tesla shares. Others asked if investors would get a vote on any proposed merger and how executives would ensure that a tie-up treats Tesla investors fairly.
One retail investor asked how Musk would balance his compensation plan, which requires the Tesla CEO to hit a series of ambitious goals to unlock the full $1 trillion payout, with a SpaceX merger.
"To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?" they wrote in a post that has received nearly 300 votes.
Musk's goals include passing 20 million EV sales, 10 million Full Self-Driving subscriptions, and deploying 1 million robotaxis and Optimus robots.
While the majority of questions on the Q&A platform were focused on Tesla's sluggish robotaxi rollout and plans for Optimus, Business Insider counted at least 20 questions about the potential merger, making it one of the most-discussed topics among investors.
It's a sign that Tesla investors are increasingly responding to rampant speculation about a mega-merger with SpaceX, which raised a record $86 billion in a blockbuster IPO last month.
Musk is the CEO of two public companies that are worth more than $1 trilion. Bloomberg/Getty Images Longtime Tesla investor Ross Gerber told Business Insider he expected the merger to come up in Tesla's Q2 earnings call on Wednesday.
"I expect management to downplay it, because on the surface it does not create obvious value for either company. It would be complicated, distracting, and difficult to structure in a way that makes everyone happy," said Gerber, who is the CEO of wealth management firm Gerber Kawasaki.
Gerber added that the slow pace of Tesla's robotaxi expansion, which he said underpinned the company's $1.4 trillion valuation, is investors' main focus right now. However, he still expects a tie-up with SpaceX to happen eventually.
"SpaceX is where much of the innovation and excitement is right now, while Tesla's core EV business is under increasing pressure," Gerber said.
"If investor interest continues shifting away from EVs and toward SpaceX's growth story, a merger may become a way to reframe Tesla around Elon's stronger innovation platform," he added.
Tesla and SpaceX's share prices have both languished in the past month. Tesla's stock is down nearly 8%, while SpaceX has fallen 35% as the rocket maker's shares tumbled from their post-IPO peak.
SpaceX's IPO broke records, but it has had a bumpy landing. TIMOTHY A. CLARY / AFP via Getty Images Investors and Tesla bulls previously told Business Insider that a combination would make it easier for the two companies, which are already heavily intertwined, to work together.
SpaceX and Tesla are already collaborating on Musk's Terafab chip-building moonshot, and SpaceX president Gwynne Shotwell didn't rule out a merger last month.
"That might make Elon's life a little easier, actually," Shotwell said.
"There's no question that there's synergies between Tesla and SpaceX in our futures, definitely, there's a convergence of a kind of what we're all trying to accomplish in the future," she added.
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V úterý ráno rostou zámořské futures kontrakty +0,5 %, zatímco otevření v Evropě zřejmě bude nevýrazné poblíž nuly. Asie přes noc posílila poprvé za 4 dny, investoři se vrátili k čipům, což po nedávném výprodeji vedlo k oživení v tomto sektoru. Cena ropy klesá -1 %, Brent se obchoduje lehce nad 88 USD za barel. I když USA a Írán si „vyměňovali údery“ již desátý den po sobě. Nyní budou investoři obracet svoji pozornost na výsledky megakapitalizovaných společností, tento týden budou oznamovat kvartální čísla Tesla a Alphabet. Novartis vykázala v minulém čtvrtletí vyšší než očekávaný zisk, což signalizuje návrat k růstu. Praha včera vstoupila do nového týdne mírným růstem, index PX přidal +0,3 % na 2592 bodů. Silnější závěr s komoditami předvedl ČEZ (1310 Kč, +0,8 %). Z bank si vedla nejlépe Moneta (+0,9 %), u zbrojařů klesal COLT CZ (-1 %), naopak posílilo CSG (+1,2 %). Dnes čekáme klidnější vývoj v prázdninovém tempu.
The past couple of years have been rough for electric vehicle (EV) makers. Between lagging charging infrastructure, the expiration of EV tax credits in the U.S., and increased competition, even Tesla (TSLA 2.87%), the top player in this niche, has seen unimpressive delivery numbers. That is, until recently. Tesla announced its second-quarter deliveries on July 2, and they were strong. Here's what that means for the stock.
Image source: The White House.
EVs are back in style Tesla's CEO, Elon Musk, may also have played a role in the company's recent struggles. His political activities led to a backlash and cost Tesla between 1 million and 1.26 million deliveries, according to some estimates. But perhaps that's all in the past now. In the second quarter, Tesla recorded 480,126 deliveries.
That was 25% higher than the prior-year quarter and significantly above the consensus Wall Street estimate of around 406,000. The last time it posted stronger year-over-year growth in deliveries was the third quarter of 2023, so almost two years ago. This performance was partly due to broader macroeconomic factors.
With tensions in the Middle East driving up oil and gas prices, many consumers opted to buy EVs. However, Tesla's strong second-quarter deliveries were not enough to impress the market: The stock declined after it released its deliveries report.
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All eyes on robotaxis Tesla is worth $1.2 trillion and has performed pretty well over the past year, with its shares gaining 18%, despite mixed financial results, as of writing. That tells us that the market no longer sees it as just a car company. Several of Tesla's ongoing projects could be transformative, significantly improving its financial results. That's what many investors are counting on. One of these initiatives -- and perhaps the most important -- is Tesla's robotaxi ambitions. And progress along those lines will be critical to the stock performance over the next few years. Tesla could also make headway with its humanoid robot project. The company said it would start ramping up production of its Optimus 3 in late July or early August.
With all that said, is it worth it to invest in Tesla right now? On the one hand, the company's robotaxi business, once it is up and running in many cities, could be a hit. Unlike some companies working on this project, Tesla benefits from a brand name, a large fleet of vehicles on the roads that helps the company train and improve its self-driving software, and a large production capacity -- thanks to many megafactories -- that has allowed it to achieve economies of scale. All these are significant advantages that could help Tesla dominate.
However, the market is already arguably factoring in some of that success into its stock price, and the company's shares could dip at the first sign of trouble. In other words, Tesla is a rather risky company. Long-term investors comfortable with that should consider initiating a position. But it's important to brace for the volatility that almost certainly lies ahead.
Tesla (TSLA) is set to report Q2 results after the closing bell on Wednesday, July 22, with investors hoping the EV leader can build on a surprisingly strong delivery report.
SpaceX Stock OvervaluedSpaceX stock was priced at $135 for its record-breaking IPO. Shares listed at around $150 and quickly traded higher for weeks with strong demand. Last week, the stock came back to earth, and new lows continue to be hit on Monday.
Last week amid the selloff, Tilson told investors they should continue to stay away.
"Don’t even think about bottom-fishing this one, as it still trades at 92 times trailing revenues," Tilson wrote in a daily newsletter. "That means it’s still nearly 10 times overvalued, given that I think a generous multiple for the stock would be 10 times revenues."
Tilson said he predicted many times previously that the stock was overvalued, calling SpaceX "the most overvalued large-cap stock of all time."
Tilson Critical of Analyst Price TargetsWhile Tilson is critical of the valuation of SpaceX stock, he says he doesn’t recommend that anyone short stocks.
In a recent email, Tilson shared the list of analyst ratings on SpaceX and their price targets. Tilson warns that investors should take the price targets with a grain of salt, given the large number of analysts who split a $500 million fee pool on the IPO and will profit from interest in shares.
Tilson said analysts from big banks and asset management companies could also benefit down the road.
"It will no doubt be seeking to use its stock to make lots of acquisitions – which means more banking and advisory fees," Tilson said.
Tilson said that with the company having quarterly losses, it could issue more debt and equity, which means more fees for bankers.
SpaceX Stock Price ActionSpaceX stock is down 1.2% to $122.52 on Monday versus a $120.10 to $225.64 trading range since going public. The new low was set earlier Monday morning.
Photo Courtesy: JOCA_PH on Shutterstock.com
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Shares of Tesla (NASDAQ:TSLA | TSLA Price Prediction) are down 17% year to date (YTD) in 2026, and the electric vehicle maker has one clear chance this week to change the story. Tesla reports its Q2 2026 results after the U.S. market close on Wednesday, July 22, marking the automaker’s most important earnings event of the summer.
The setup is unusual because delivery volumes have already been reported. Wednesday’s numbers will hinge on automotive margins, capital spending, and management’s tone on autonomy and full-year 2026 guidance rather than headline unit counts.
The options markets are pricing in a post-earnings move of 8% in either direction, consistent with Tesla’s history of sharp reactions to earnings. Last quarter, Tesla posted adjusted EPS of $0.41 on revenue of $22.4 billion, a beat that still failed to lift the shares.
What Wall Street Expects on Wednesday Consensus estimates place Tesla’s Q2 2026 adjusted EPS between $0.50 and $0.54, on revenue of $25.7 billion to $25.8 billion. That implies 25% EPS growth and 15% revenue growth year over year (YoY). Meanwhile, the full-year 2026 consensus on Tesla calls for revenue of $103.3 billion and EPS of $2.15.
Polymarket contracts assign a 75.5% probability that Tesla beats consensus EPS Wednesday, though volumes on that specific market are light. Volumes on that specific market are light, so the signal should be treated as directional rather than definitive.
Deliveries Are Strong, But Are They Durable? Tesla’s Q2 deliveries were pre-announced at 480,126 vehicles, up 25% YoY and up 34% sequentially. That makes it Tesla’s strongest EV quarter since Q3 2025 and removes a major overhang that plagued the shares earlier in the year.
Analysts note that the strength was aided by elevated gasoline prices tied to Middle East tensions and a China rebound in May, while U.S. demand looked soft. That raises the question of whether the number reflects genuine reacceleration or a pull-forward.
Margins, Capex, and Guidance in Focus The bigger question Wednesday is whether Tesla’s Q1 2026 margin recovery has held up. Tesla’s automotive gross margin expanded to 21% from 16% a year earlier, aided by lower material costs, higher average selling prices, and one-time warranty and tariff benefits.
Tesla raised its 2026 capital expenditure outlook to $25 billion from $20 billion and warned free cash flow could turn negative. Investors can watch for commentary on cash burn, production ramps, and how quickly AI and robotics spending translates into revenue.
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Energy storage remains a growing secondary engine. Tesla deployed a record 13.5 GWh in the quarter, up 40% YoY, giving the company a second high-margin business alongside vehicles.
Autonomy Is the Real Valuation Driver Some bull-case models rely almost entirely on autonomy monetization to justify Tesla’s valuation. Tesla’s Robotaxi service runs in Austin, Dallas, Houston, and Miami, yet remains behind Alphabet‘s (NASDAQ:GOOGL) Waymo. Waymo surpassed 500,000 fully autonomous rides per week as of Q1 2026, a scale gap that Tesla has yet to close.
Tesla CEO Elon Musk has pushed back the robotaxi timeline, and Optimus production has been described as slow. Any concrete update on Cybercab volumes, FSD monetization, or Optimus milestones could set the tone into year end because Tesla stock trades at a P/E ratio of 339.5x on autonomy strength.
A Diversified Way to Play the Theme Traders wanting exposure to the EV and autonomy trade without single-stock risk can look at the Global X Autonomous & Electric Vehicles ETF (NYSEARCA:DRIV). The fund holds Tesla as a major weight alongside global automakers, tech-hardware makers such as Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM), and battery suppliers.
The ETF is a narrow, volatile thematic product with concentration risk. Its shares still move meaningfully on Tesla headlines, just with a modest cushion from diversified holdings.
What to Watch This Week Tesla shares enter Wednesday’s report with retail sentiment on Reddit described as neutral to mixed, while the Wall Street analyst consensus price target sits at $425. That gap reflects both the 2026 reset and the wide range of outcomes still on the table.
Tesla stock has priced in known softness, so the reaction Wednesday will hinge on tone. Market watchers can watch for updates on automotive margins, capital expenditure trajectory, energy storage momentum, and concrete milestones on Cybercab and Optimus production.
The conference call will follow the release after the close. That call, along with the headline EPS figure, could determine whether Tesla stock can start clawing back its 17% year-to-date loss in the second half of 2026.
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As Tesla (TSLA) prepares to report second-quarter earnings on Wednesday, the backdrop for the EV giant looks increasingly challenging.
Despite a seemingly strong macro footprint, a mix of fundamental headwinds, competitive pressure and lofty valuation expectations suggests that risks are skewed to the downside heading into the release. Tesla recently released second-quarter sales and delivery figures that easily beat consensus expectations. Yet, instead of rallying, the stock retreated.
This price action is a classic tell: market expectations are extremely high, and a beat is now viewed merely as the baseline. If exceeding delivery targets fails to spark a rally, meeting or slightly beating bottom-line earnings will likely be greeted glumly by Wall Street.
The broader enthusiasm for pure-play EVs has cooled significantly over the past two years, but competitive pressure in key segments remains fierce. Rivian's rollout of the R2 targets the core mass-market SUV segment ($45,000–$60,000)—the exact price band where Tesla's Model 3 and Model Y have traditionally buttered their bread (>96% of 2025 sales were those two models) As competitors like Rivian with their newly released R2 hone in on this volume sweet spot with improved economics and fresh design appeal, Tesla faces mounting margin pressure in its core automotive business. Admittedly, Rivian does not have the production capacity to supplant Tesla's most popular models, but strong demand will help it raise the capital and capacity needed to do so.
Unsubstantiated valuations and AI distractionsTesla's elevated valuation relies heavily on non-automotive catalysts like robotics and autonomy. Wall Street continues to price in long-term optionality for humanoid robotics (Optimus) and full self-driving.
However, overall market enthusiasm for the AI narrative has shifted. Investors now favor hardware providers with tangible near-term financial returns over downstream software promises. Another possible area of support is speculation about potential corporate actions or synergies with SpaceX, which continues to circulate.
TSLA year to date
Yet, a merger or restructuring makes little strategic sense for the core operations of either firm. Furthermore, with SpaceX shares trading below their initial public valuation, speculative enthusiasm around cross-entity corporate financial engineering has lost momentum.
Technically, TSLA looks vulnerable. Moving envelope indicators and Bollinger Bands show long positions struggling, while the MACD, RSI, and major long-term moving averages display explicitly bearish momentum profiles.
In recent quarters, Tesla's post-earnings stock moves have been more muted than its multi-year historical average. The options market reflects this compression:
Implied volatility: The at-the-money straddle expiring July 24 (e.g., the $380 straddle) is priced at roughly 7% of the underlying stock price.Historical move: This sits visibly below Tesla's long-term average post-earnings swing of ~9% over comparable two-day periods.The strategy: Short-term bear put spreadWhile options premiums are pricing in a lower move than the historical average, implied volatility is slightly higher than last quarter, and put skew remains elevated. Buying options outright can expose traders to an expensive "volatility crush" immediately after the announcement.
For equity holders seeking downside protection or traders looking for a risk-defined alternative to shorting the stock, a short-term Bear Put Spread offers a reasonable risk/reward.
Specifically:
Buy August 21st (regular expiration) $360 for $15Sell August 21st (regular expiration) for $330 Put $6Max Loss: $900Max Gain $2100Skill Level: Intermediate This trade:
It captures the elevated put skew.It defends against "IV" or "vol crush". The short put reduces net Vega and Theta drag following the earnings announcement.Attractive risk reward: At $9.00 this $30 wide put spread pays more than 2:1 if Tesla falls to $330 by August Expiration. While that's a lot lower than the current stock price, the average move over the month following earnings is just over 15% higher or lower.
Tesla, Inc. is valued as an option on its Optimus humanoid robot project, not as a traditional automaker. Optimus could disrupt global labor economics, offering sub-$2/hour automation and driving large-scale industrial reshoring. A Proof of Concept with third-party deployment is the key catalyst; market focus will shift from current TSLA earnings to robotics TAM.
HomeIndustriesAutomobiles‘What is keeping Tesla back from accomplishing these short-term goals that they’ve set for themselves?’ asks one investorJuly 20, 2026, 1:54 p.m. ET
Tesla’s robotaxi plans have been of major interest to investors, but some are getting fed up with the company’s slower-than-expected rollout.
Retail investors specifically want to know why it’s taking so long for Tesla TSLA to even come close to meeting CEO Elon Musk’s forecasts. The company lets individual investors submit questions and vote on which ones deserve airtime on Tesla’s earnings call, and robotaxi delays are among the top areas of interest.
On CNBC’s Fast Money segment titled “A Big Tech Pullback… And Time to Sell Tesla? 7/17/26,” the panel spent much of the block picking apart why the Elon Musk premium built into Tesla’s (NASDAQ: TSLA | TSLA Price Prediction) stock is thinning out just days before the company reports Q2 results on July 22.
The Panel’s Case: Fundamentals Unclear, Technicals Weakening The host framed the setup by saying “the fundamental marginal catalyst is still very unknown” and that “the technicals are frankly the more interesting way to look at the stock right here.”
One trader argued Tesla had been trading as a cheaper listed proxy for SpaceX, a trade that is now unwinding: “people are thinking maybe I just buy SpaceX… they’re not buying a proxy.” Another panelist added that “the magic of Elon too is starting to dissipate” as robotaxi and humanoid robot milestones keep slipping.
The financials give that view something to lean on.
Tesla’s full-year 2025 net income fell nearly 47% to $3.79 billion, while vehicle deliveries declined 9% year over year. Fourth-quarter deliveries dropped 16% from a year earlier to 418,227 units.
Jim Cramer highlighted the deteriorating earnings trend, noting that Tesla’s EPS peaked at $4.07 in 2022 before declining 23% in 2023, 22% in 2024, and another 31% in 2025. The first quarter of 2026 provided some relief, with revenue rising 15.8% year over year to $22.39 billion and automotive gross margin recovering to 21.1%, helped in part by one-time warranty and tariff benefits disclosed in the company’s 8-K.
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Options Desks Are Bearish CNBC options analyst Mike Khouw estimated that the day’s options activity translated into roughly $550 million of net short delta exposure in Tesla shares. The options market was pricing in an implied move of about 7% in either direction through earnings, with call and put positioning roughly balanced overall—a setup Khouw described as “slightly more bearish than usual.”
One notable trade was the September 400/300 put spread, which traded roughly 6,000 contracts at about $35 per spread. The options chain also reflected a defensive tilt. For the September 18 expiry, put volume totaled 61,128 versus 19,591calls, producing a 3.12 put/call volume ratio.
Enter Rivian’s R2 as a Direct Model Y Rival The panel also flagged a competitive wrinkle Tesla has largely avoided: a credible mass-market EV competitor. Rivian (NASDAQ: RIVN) is beginning external R2 deliveries of a mid-size SUV positioned squarely against the Model 3 and Model Y.
Q1 revenue rose to $1.381 billion, up 11% YoY, with deliveries of 10,365 vehicles, up 20%. Rivian reaffirmed 2026 delivery guidance of 62,000–67,000 vehicles and ended the quarter with $4.83 billion in cash, cash equivalents, and short-term investments. The company also has access to a DOE loan of up to $4.5 billion for its Georgia plant and an Uber partnership that includes up to $1.25 billion of investment through 2031, supporting deployment of up to 50,000 autonomous R2 robotaxis.
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There's no denying Tesla (TSLA 1.43%) ushered electric vehicles (EVs) into the mainstream, even making them cool. And for a long time, being the first to do so meant Tesla was the biggest and best-known name in the business.
Nothing invites competition to a new market like a proven opportunity, though. Now, Tesla's facing a slew of competitors, with one particular EV titan to worry about. That's China's BYD Company (BYDDY +1.42%), which shipped 557,090 battery-powered vehicles last quarter alone, topping Tesla's much-improved total of 480,126, and reclaiming the top spot temporarily lost in Q1.
Data source: CNEVPost. Chart by author.
The question is, what does this mean for Tesla shareholders?
Two finer points behind the broad numbers The numbers in and of themselves don't mean much. A stock's value is relative to that particular company's history and likely future. Both BYD and Tesla could perform well enough to satisfy each organization's shareholders.
In a more qualitative context, though, the two numbers underscore a couple of noteworthy details.
One of these is how, while BYD continues to outsell Tesla in China (as could be expected), it's also doing remarkably well in Europe, where Tesla has historically led. BYD delivered a record-breaking 175,349 electric automobiles to overseas markets in June alone, up nearly 95% year over year, with European demand remaining strong after last year's total shipments to that market growing 270%.
Image source: Getty Images.
The other top talking point from the two companies' recent delivery numbers is one that Tesla supporters are quick to highlight. That's the fact that these two EV names aren't exactly an apples-to-apples comparison. BYD is an integrated manufacturer aiming to build affordable electric vehicles for the masses. While Tesla's Model 3 is also meant to be lower-cost, at a starting price of $36,990 that quickly edges higher with even just a few basic upgrades, Tesla's electric vehicles remain in the upper range of the premium scale.
It would be naïve to believe that the availability of a more affordable option isn't at least poaching some would-be Tesla owners, if not many. The evidence of this dynamic comes in the form of recent price cuts that aren't being matched dollar for dollar with production cost cuts. Unsurprisingly, these materialized in step with the ramp-up of BYD's deliveries.
Connecting the dots So what does this mean for Tesla's dominance of the EV market, and by extension, for shareholders?
It's simple -- it means Tesla is no longer dominant.
It's still an EV powerhouse to be sure. The advent of its first similarly scaled competition, however, is exposing the downside of some strategic decisions, like the fact that it's not as vertically integrated as BYD is. This more streamlined structure raises its total manufacturing costs, while also limiting its flexibility. And there was little room for either, given how profit margins have been pressured.
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As far as the stock's concerned, we're already seeing the impact. Shares have made no net progress since early last year, shortly after BYD first lapped Tesla's deliveries. Although that's not a permanent condition, it does suggest investors are no longer giving the stock the benefit of any doubt. That's fairly new.
Tesla's Q2 earnings report scheduled for July 22 should shed some light on any profit-margin-related concerns, for better or worse.
In its upcoming report, Tesla (TSLA - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.50 per share, reflecting an increase of 25% compared to the same period last year. Revenues are forecasted to be $25.81 billion, representing a year-over-year increase of 14.7%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 6.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Tesla metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenues- Automotive sales' reaching $18.35 billion. The estimate suggests a change of +16.3% year over year.
Based on the collective assessment of analysts, 'Revenues- Energy generation and storage' should arrive at $3.55 billion. The estimate indicates a change of +27.2% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Services and other' at $3.80 billion. The estimate indicates a change of +24.7% from the prior-year quarter.
The consensus estimate for 'Revenues- Automotive regulatory credits' stands at $374.71 million. The estimate suggests a change of -14.6% year over year.
The collective assessment of analysts points to an estimated 'Geographic Revenues- United States' of $11.98 billion. The estimate suggests a change of +1.4% year over year.
Analysts predict that the 'Geographic Revenues- Other International' will reach $7.24 billion. The estimate indicates a change of +13.5% from the prior-year quarter.
It is projected by analysts that the 'Geographic Revenues- China' will reach $4.99 billion. The estimate indicates a year-over-year change of +15.9%.
The consensus among analysts is that 'Total vehicle deliveries' will reach 431,186 . Compared to the present estimate, the company reported 384,122 in the same quarter last year.
The combined assessment of analysts suggests that 'Other models deliveries' will likely reach 9,874 . Compared to the present estimate, the company reported 10,394 in the same quarter last year.
According to the collective judgment of analysts, 'Model 3/Y deliveries' should come in at 426,145 . The estimate is in contrast to the year-ago figure of 373,728 .
Analysts expect 'Storage deployed' to come in at 13077 megawatt hours. The estimate is in contrast to the year-ago figure of 9600 megawatt hours.
Analysts forecast 'Total Leased Units' to reach 9,800 . The estimate is in contrast to the year-ago figure of 6,670 .
View all Key Company Metrics for Tesla here>>>
Over the past month, shares of Tesla have returned -4.9% versus the Zacks S&P 500 composite's +0.6% change. Currently, TSLA carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
There’s a peculiar dynamic that surrounds Tesla every quarter, and it’s worth pausing on before Wednesday evening.
Unlike almost any other large-cap company, Tesla tells you how it did before it tells you how it did. The delivery figures land weeks ahead of the financials, which means that by the time management steps onto the earnings call on July 22nd, investors already know the most important operational number of the quarter.
What’s left is the harder question: what did it cost to get there, and what comes next?
Image Source: StockCharts
Delivery Numbers Impress Ahead of Earnings AnnouncementThis quarter, the delivery number was genuinely impressive. Tesla delivered 480,126 vehicles in the second quarter — 467,762 Model 3 and Model Y units, plus 12,364 across other models — comfortably clearing most estimates.
That’s a 34% sequential jump and a 25% increase from a year ago, making it Tesla’s strongest quarter for EV sales since the third quarter of 2025. For a company that spent much of the past two years fielding questions about demand saturation, that’s a meaningful rebuttal.
But a sophisticated reading requires understanding why the number was so strong, and here the picture gets more nuanced. A significant driver was elevated gasoline prices stemming from the Middle East conflict, which pushed cost-conscious consumers toward electric vehicles.
International markets did the heavy lifting: Europe showed robust momentum, and China staged a strong rebound in May, snapping a two-month streak of year-over-year declines. U.S. demand, by contrast, remained comparatively soft. The uncomfortable parallel is to the third quarter of 2025, when a similar surge materialized as American buyers rushed to beat the expiration of federal EV tax credits — a temporary pull-forward that borrowed from future quarters.
Whether this quarter’s strength proves durable or similarly borrowed is the question management will need to address on the call.
Tesla’s Rating Improves as Estimates Jump Now to the projections themselves. The Zacks Consensus Earnings Estimate for the quarter stands at 50 cents per share on revenues of $25.8 billion, implying year-over-year growth of 25% and 14.7%, respectively. Encouragingly, that earnings estimate has been revised upward by five cents over the past 60 days — which means analysts are nudging their expectations higher into the print.
Image Source: Zacks Investment Research
For the full year, the consensus calls for revenues of $103.3 billion, up 8.9%, and EPS of $2.15, representing a healthy 29.5% increase.
One segment deserving more attention than it typically receives is energy storage, which quietly delivered the quarter’s other standout result. Tesla deployed 13.5 GWh of energy storage in the second quarter — up 53% sequentially and 40% year over year, driven by stronger-than-anticipated demand for Megapack and Powerwall. In a world of surging data-center power requirements and strained electrical grids, this business has become a legitimate secondary growth engine.
Then there’s the story that actually drives Tesla’s valuation: autonomy and artificial intelligence. The company now operates unsupervised robotaxi service in Austin, Dallas, Houston, and Miami, with supervised service in the San Francisco Bay Area — real, tangible progress that shouldn’t be dismissed.
Yet Tesla (TSLA - Free Report) still has considerable ground to make up against Alphabet’s Waymo, the acknowledged frontrunner, and Elon Musk has already pushed back the robotaxi timeline. The Optimus humanoid robot program tells a similar story; on the first-quarter call, Musk candidly described production as “quite slow” and said output this year was “literally impossible to predict.”
Musk’s ambition carries a rising price tag. Tesla lifted its 2026 capital expenditure forecast from $20 billion to $25 billion, and management has warned that free cash flow could turn negative as spending on AI and autonomous driving accelerates. Investors will want clarity on Wednesday about how long that investment phase runs and what milestones justify it.
What the Zacks Model RevealsTesla’s earnings track record is mixed but improving. Over the trailing four quarters, the company has topped EPS estimates three times and missed once, delivering an average surprise of 5.48%.
Our proprietary model points toward a beat this time. Tesla carries an Earnings ESP of +5.31% paired with a Zacks Rank #3 (Hold). When a positive Earnings ESP combines with a Zacks Rank of #3 or better, our research shows a positive surprise follows roughly 70% of the time.
Options markets are pricing in a move of about 7.6% in either direction after the report, notably wider than the 4.4% average move over the past four quarters. Expectations, in other words, are elevated in both directions.
Tesla possesses a formidable brand, genuine technological leadership, and multiple platforms that could prove transformational. The delivery rebound appears real, the energy business is compounding nicely, and a Q2 earnings beat looks more likely than not.
At $380.84, Tesla (NASDAQ:TSLA | TSLA Price Prediction) looks stretched, even as Wall Street consensus leans Buy. The stock is down 15.32% year to date while the S&P 500 is up 9%, signaling the market is repricing Tesla’s fundamentals faster than analyst targets adjust.
Tesla remains the world’s most valuable automaker, yet the story supporting a 346 trailing P/E rests on Robotaxi, Optimus, and FSD scaling into standalone businesses. Vehicles drove most of the $22.39 billion in Q1 2026 revenue, and the autonomy narrative has cracked over the last two quarters.
Why Bulls Still See $460 on the Table Q1 2026 looked strong. Automotive gross margin expanded to 21.1% from 16.2% year over year, operating income surged 135.84%, and free cash flow more than doubled to $1.44 billion. Services and Other revenue grew 42% on 1.28 million active FSD subscriptions, up 51% year over year.
Bank of America reiterated a Buy with a $460 target, citing Robotaxi expansion into Miami, Dallas, and Houston. Consensus sits at $425.22 with 23 Buy, 18 Hold, and 6 Sell ratings, implying 11.6% upside. Cybercab, Tesla Semi, and Megapack 3 reach volume production in 2026, backed by $44.74 billion in cash.
Three Structural Cracks Beneath the Autonomy Story First, margin quality. Q1’s gross margin recovery leaned on one-time warranty and tariff-related gains rather than durable pricing power. Regulatory credit revenue slid from $739 million in Q3 2025 to $380 million in Q1 2026, and cheaper Model Y and Model 3 variants squeeze ASPs as XPeng and BYD accelerate globally.
Second, capex is eating cash. Capital expenditures jumped 67.09% year over year in Q1 while operating expenses grew 37% on AI infrastructure and CEO stock-based compensation. Full-year 2025 net income fell 46.79% on revenue down 2.93%, and Q4 2025 net income collapsed 63.7%. Free cash flow yield sits at 0.43%.
Third, beta fragility. Tesla’s 1.802 beta amplified the Magnificent 7 drawdown into a 15.32% YTD loss versus the S&P 500’s 9% gain. Polymarket’s crowd assigns only 16% probability to an Optimus release by year end and 19% to a California Robotaxi launch, contradicting the growth narrative in the multiple.
The Case for Patience Before Q2 Q2 2026 earnings drop July 22 with consensus at $0.54 EPS on $26.4 billion revenue. Retail deliveries of 480,126 vehicles in Q2 sparked bullish Reddit sentiment. A clean beat with margin durability and firm Optimus production numbers could invalidate the bear case, and the AI5 chip tape-out plus EU FSD expansion represent real optionality worth pricing after one more cycle.
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What the Numbers Actually Say at $380 Tesla trades at $380.84 with a market cap of $1.43 trillion. The $425.22 consensus target across 47 rated analysts implies 11.6% upside, though analyst targets remain one data point rather than a guarantee. An AI-model target of $346.08 implies 9.13% downside instead.
Trailing P/E is 346, forward P/E is 167, EV/EBITDA is 116, and price to book is 17. Shares are down 6.6% over the past week and 15.32% YTD, versus the S&P 500 up 9% YTD and 18.35% over one year. Prediction market composite sentiment reads 37.73, with a deteriorating 7-day trend of -17.72.
At $380, the Risk/Reward Skews Bearish The stock is priced for Optimus and Robotaxi to scale within 18 months, yet the two most liquid prediction markets price them at 16% and 19% probabilities. Consensus targets have not caught up.
The near-term path lower runs through Q2 earnings on July 22. If automotive gross margin normalizes toward the mid-teens without the warranty and tariff tailwind, if regulatory credits keep sliding, and if operating expenses stay 37% higher YoY, the math cannot support 346 times trailing earnings. A miss versus $0.54 consensus would likely test $346, where the AI model already sits.
The thesis breaks if Q2 delivers durable 20%-plus automotive gross margin without one-time gains, Optimus shows firm production numbers, and Robotaxi discloses California approval progress. Without those confirmations, a 1.802 beta, a mega-cap drawdown backdrop, and bearish prediction markets create asymmetric downside from here.
When Wall Street targets sit above an AI model calling for downside, retail sentiment is deteriorating, and the highest-conviction July close market pins Tesla at $360, the risk/reward skews to the downside at this price.
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Key Takeaways Tesla entered Latvia and Uruguay, expanding its official EV presence across Europe and South America.Rising EV adoption, incentives and charging infrastructure support Tesla's push into both markets.The expansion widens Tesla's addressable market even though volumes would be small. While much of the attention around Tesla (TSLA - Free Report) has centered on robotaxis and artificial intelligence, the company is also expanding its global electric vehicle (EV) footprint. Last week, Tesla entered two new markets—Latvia in Europe and Uruguay in South America, per Teslarati. Tesla is targeting countries where EV adoption is gaining momentum, government policies are supportive, and renewable energy is becoming more widespread.
In Europe, Tesla is strengthening its presence in Latvia after establishing Tesla Latvia SIA toward the end of 2025. The company has now begun laying the groundwork for full operations by advertising roles for a service center. It has confirmed its first physical location: a pop-up store at the Spice shopping center in Riga, set to open on Aug. 21. The move aligns Tesla's broader strategy in the Baltic region, where it has gradually built its presence through service centers and retail locations.
Although Latvia remains a relatively small auto market, EV adoption has been steadily increasing. Battery-electric vehicles accounted for just over 7% of new passenger car registrations last year, supported by government incentives and expanding charging infrastructure. Tesla's Model 3 has already emerged as one of the country's most popular EVs, suggesting the brand enjoys strong recognition even before official operations begin. Vehicles sold in Latvia are expected to be supplied primarily from Gigafactory Berlin or Shanghai.
The company has officially entered Uruguay by establishing a local subsidiary, homologating multiple versions of the Model 3 and Model Y. The launch makes Uruguay Tesla's third official market in South America after Chile and Colombia.
Uruguay offers favorable conditions for EV adoption. Battery-electric vehicles account for more than one-fifth of recent vehicle sales, helped by tax incentives, elevated fuel costs, and an electricity grid powered almost entirely by renewable energy. While hundreds of Teslas have already reached the country through unofficial imports, direct operations will now provide customers with official warranties, after-sales service and manufacturer support. Vehicles are expected to be imported from Gigafactory Shanghai, while Tesla also plans to expand its Supercharger network alongside the country's existing charging infrastructure.
What It Means for InvestorsNeither market will move Tesla's global delivery numbers on its own. Uruguay registers fewer than 50,000 new vehicles across its entire market each year, and Latvia's market is similarly small. The significance here is less about volume and more about strategy. By expanding into smaller markets with rising EV adoption, Tesla is creating new growth opportunities at a time when demand in the United States remains soft following the expiration of the federal EV tax credit—even as Europe and China have both rebounded strongly in recent months.
For investors, the dual-continent expansion highlights that Tesla continues to broaden its addressable market while reinforcing its global brand, even if these particular entries are unlikely to move the needle on their own.
BYD & Li Auto Expansion EffortsChinese rival BYD Co Ltd (BYDDY - Free Report) has been rapidly growing its international footprint across Europe, Southeast Asia, Latin America, and the Middle East. BYD is backing this push with new manufacturing plants in markets such as Hungary, Brazil, and Thailand, while investing in localized production, charging infrastructure, and advanced EV technologies to strengthen its overseas presence.
Chinese EV maker Li Auto (LI - Free Report) is also stepping up its international ambitions. After entering markets across Central Asia, the Caucasus and North Africa in 2025, Li Auto is accelerating its overseas push in 2026. It plans to launch an international version of its flagship Li L9 in the third quarter of 2026, targeting Central Asia, the Middle East, and other markets with localized features tailored to regional markets.
Tesla’s Price Performance, Valuation and EstimatesTesla has underperformed the industry year to date.
Image Source: Zacks Investment Research
From a valuation perspective, Tesla appears significantly overvalued.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Tesla’s EPS has been revised over the past 60 days.
Image Source: Zacks Investment Research
TSLA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryTesla, Inc. delivered a robust Q2 operating update, with 480,126 vehicles delivered—beating consensus by 18%—and strong energy storage growth.Despite the delivery beat, TSLA’s high valuation demands Q2 earnings demonstrate margin resilience, positive free cash flow, and tangible robotaxi progress.Energy storage deployments surged 53% quarter-over-quarter, but investors need evidence this translates into sustainable profitability and cash flow.I maintain a Hold rating on TSLA stock, awaiting the 22 July report to confirm whether operational momentum can justify the current AI-driven premium. jetcityimage/iStock Editorial via Getty Images
Tesla, Inc. (TSLA) has provided investors with one of its most robust operating updates in recent times. However, the investment case remains unsettled ahead of its earnings report, which are due to go out
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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.
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.
Dimensional Fund Advisors LP boosted its holdings in Tesla, Inc. (NASDAQ:TSLA – Free Report) by 5.6% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,145,660 shares of the electric vehicle producer’s stock after purchasing an additional 270,950 shares during the quarter. Tesla makes up approximately 0.4% of Dimensional Fund Advisors LP’s holdings, making the stock its 22nd biggest position. Dimensional Fund Advisors LP owned 0.14% of Tesla worth $1,912,621,000 as of its most recent SEC filing.
A number of other institutional investors have also added to or reduced their stakes in the stock. Networth Advisors LLC purchased a new position in shares of Tesla in the fourth quarter worth $26,000. Davidson Capital Management Inc. increased its holdings in Tesla by 79.4% in the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock valued at $27,000 after acquiring an additional 27 shares during the last quarter. Turning Point Benefit Group Inc. bought a new stake in Tesla in the 3rd quarter valued at $30,000. Prism Advisors Inc. purchased a new stake in Tesla in the 4th quarter worth $30,000. Finally, Texas Capital Bancshares Inc TX bought a new position in shares of Tesla during the 3rd quarter valued at about $31,000. 66.20% of the stock is owned by hedge funds and other institutional investors.
Insider Activity at Tesla In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the sale, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the sale, the chief financial officer owned 22,039 shares of the company’s stock, valued at approximately $8,864,085.80. This represents a 10.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 32,015 shares of company stock valued at $12,383,640 over the last ninety days. Corporate insiders own 19.90% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have recently weighed in on TSLA shares. DZ Bank upgraded Tesla from a “sell” rating to a “hold” rating and set a $385.00 price objective for the company in a research report on Friday, April 24th. Oppenheimer reiterated a “market perform” rating on shares of Tesla in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Tesla in a research note on Tuesday, June 30th. Jefferies Financial Group set a $400.00 price objective on Tesla and gave the stock a “hold” rating in a research note on Monday, July 13th. Finally, The Goldman Sachs Group initiated coverage on Tesla in a report on Friday, June 5th. They set a “buy” rating on the stock. Twenty-one research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $408.07.
Read Our Latest Stock Analysis on TSLA
Tesla Stock Down 0.0% Shares of NASDAQ TSLA opened at $380.79 on Monday. The firm’s 50-day moving average price is $409.41 and its 200-day moving average price is $405.63. The company has a current ratio of 2.04, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $1.43 trillion, a price-to-earnings ratio of 349.35, a P/E/G ratio of 13.08 and a beta of 1.80. Tesla, Inc. has a 12-month low of $297.82 and a 12-month high of $498.83.
Tesla (NASDAQ:TSLA – Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 EPS for the quarter, topping the consensus estimate of $0.39 by $0.02. Tesla had a return on equity of 4.89% and a net margin of 3.95%.The company had revenue of $22.39 billion during the quarter, compared to analyst estimates of $22.96 billion. During the same quarter last year, the business posted $0.27 earnings per share. The firm’s revenue was up 15.8% on a year-over-year basis. On average, equities research analysts anticipate that Tesla, Inc. will post 1.34 EPS for the current fiscal year.
Key Stories Impacting Tesla Here are the key news stories impacting Tesla this week:
Positive Sentiment: Bank of America reiterated a Buy rating and a $460 price target, citing rapid robotaxi expansion, better-than-expected deliveries, and upcoming Optimus milestones. Positive Sentiment: Analysts and investors continue to focus on Tesla’s robotaxi, Cybercab, and Optimus programs, which remain major long-term growth catalysts. Positive Sentiment: Erste Group raised its FY2026 earnings estimate for Tesla, signaling at least some improving expectations heading into the report. Neutral Sentiment: Wall Street expects a sizable earnings-driven stock move, with options pricing implying elevated volatility around the report. Neutral Sentiment: Recent coverage highlights that Tesla’s quarterly delivery strength has not yet translated into a sustained stock rebound, suggesting investors want more than just beat-and-raise narratives. Negative Sentiment: Broader AI and high-growth tech weakness is weighing on Tesla, as investors worry about stretched valuations and cooling enthusiasm for expensive megacap names. Negative Sentiment: Several reports point to skepticism around Tesla’s valuation, with commentary noting the stock could be vulnerable if earnings, margins, or guidance disappoint. Negative Sentiment: Competitive and regulatory headwinds remain in focus, including tougher EV competition in Europe, a denied NHTSA petition over a headlight recall issue, and ongoing scrutiny of Tesla’s autonomy claims. Tesla Company Profile (Free Report)
Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.
Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.
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Ascent Wealth Partners LLC lessened its stake in shares of Tesla, Inc. (NASDAQ:TSLA – Free Report) by 76.9% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 1,095 shares of the electric vehicle producer’s stock after selling 3,638 shares during the period. Ascent Wealth Partners LLC’s holdings in Tesla were worth $407,000 as of its most recent SEC filing.
Other large investors have also recently made changes to their positions in the company. Crestwood Advisors Group LLC boosted its stake in Tesla by 34.7% during the fourth quarter. Crestwood Advisors Group LLC now owns 19,567 shares of the electric vehicle producer’s stock worth $8,799,000 after buying an additional 5,039 shares during the period. Calamos Wealth Management LLC raised its stake in shares of Tesla by 5.9% in the fourth quarter. Calamos Wealth Management LLC now owns 41,907 shares of the electric vehicle producer’s stock valued at $18,846,000 after acquiring an additional 2,341 shares during the period. Private Capital Advisors Inc. lifted its holdings in shares of Tesla by 139.3% in the 4th quarter. Private Capital Advisors Inc. now owns 21,331 shares of the electric vehicle producer’s stock worth $9,593,000 after acquiring an additional 12,417 shares during the last quarter. Wealthquest Corp bought a new stake in shares of Tesla in the 4th quarter worth about $1,035,000. Finally, Knights of Columbus Asset Advisors LLC boosted its stake in shares of Tesla by 34.8% during the 4th quarter. Knights of Columbus Asset Advisors LLC now owns 64,481 shares of the electric vehicle producer’s stock worth $28,998,000 after purchasing an additional 16,652 shares during the period. 66.20% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting Tesla Here are the key news stories impacting Tesla this week:
Positive Sentiment: Bank of America reiterated a Buy rating and a $460 price target, citing rapid robotaxi expansion, better-than-expected deliveries, and upcoming Optimus milestones. Positive Sentiment: Analysts and investors continue to focus on Tesla’s robotaxi, Cybercab, and Optimus programs, which remain major long-term growth catalysts. Positive Sentiment: Erste Group raised its FY2026 earnings estimate for Tesla, signaling at least some improving expectations heading into the report. Neutral Sentiment: Wall Street expects a sizable earnings-driven stock move, with options pricing implying elevated volatility around the report. Neutral Sentiment: Recent coverage highlights that Tesla’s quarterly delivery strength has not yet translated into a sustained stock rebound, suggesting investors want more than just beat-and-raise narratives. Negative Sentiment: Broader AI and high-growth tech weakness is weighing on Tesla, as investors worry about stretched valuations and cooling enthusiasm for expensive megacap names. Negative Sentiment: Several reports point to skepticism around Tesla’s valuation, with commentary noting the stock could be vulnerable if earnings, margins, or guidance disappoint. Negative Sentiment: Competitive and regulatory headwinds remain in focus, including tougher EV competition in Europe, a denied NHTSA petition over a headlight recall issue, and ongoing scrutiny of Tesla’s autonomy claims. Wall Street Analyst Weigh In A number of research firms recently weighed in on TSLA. Robert W. Baird reduced their price objective on shares of Tesla from $538.00 to $522.00 and set an “outperform” rating on the stock in a research report on Friday, April 24th. Citizens Jmp assumed coverage on Tesla in a research note on Thursday, July 9th. They set a “market perform” rating on the stock. Evercore upgraded Tesla from a “hold” rating to an “outperform” rating in a report on Friday, June 5th. UBS Group raised their price target on Tesla from $364.00 to $442.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Finally, BTIG Research downgraded Tesla to a “neutral” rating in a research report on Friday, June 5th. Twenty-one equities research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, Tesla currently has an average rating of “Hold” and an average price target of $408.07.
Get Our Latest Stock Report on Tesla
Tesla Trading Down 0.0% TSLA opened at $380.79 on Monday. The company has a quick ratio of 1.62, a current ratio of 2.04 and a debt-to-equity ratio of 0.09. The stock’s fifty day moving average is $409.41 and its two-hundred day moving average is $405.63. The company has a market capitalization of $1.43 trillion, a P/E ratio of 349.35, a PEG ratio of 13.08 and a beta of 1.80. Tesla, Inc. has a 52 week low of $297.82 and a 52 week high of $498.83.
Tesla (NASDAQ:TSLA – Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. The business had revenue of $22.39 billion during the quarter, compared to analyst estimates of $22.96 billion. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The company’s quarterly revenue was up 15.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.27 EPS. Analysts forecast that Tesla, Inc. will post 1.34 earnings per share for the current year.
Insider Activity In other news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the sale, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at $8,864,085.80. The trade was a 10.57% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 32,015 shares of company stock valued at $12,383,640. Insiders own 19.90% of the company’s stock.
Tesla Company Profile (Free Report)
Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.
Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.
Featured Articles Five stocks we like better than Tesla Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding TSLA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Tesla, Inc. (NASDAQ:TSLA – Free Report).
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Tesla (NASDAQ: TSLA) has moved within approximately $200 billion of overtaking SpaceX (NASDAQ: SPCX) in market value, marking a notable shift just weeks after Elon Musk’s space company completed one of the largest initial public offerings in history.
As of press time, SpaceX holds a market capitalization of about $1.633 trillion, while Tesla is valued at roughly $1.430 trillion.
The difference of around $203 billion leaves Tesla about 12.4% behind its sibling company, significantly narrowing the gap that emerged following SpaceX’s public debut.
SPCX stock price chart. Source: Finbold SpaceX briefly surpassed a $2 trillion valuation after its June IPO, fueled by investor enthusiasm for its Starlink satellite business, reusable launch systems, and ambitions in space infrastructure and artificial intelligence computing.
However, the stock has since retreated sharply, with shares recently trading near $124 after reaching highs of around $226 shortly after listing.
The decline has reduced SpaceX’s market capitalization by hundreds of billions of dollars and allowed Tesla to regain ground in the race to become Musk’s most valuable company.
Investors are closely watching upcoming Starship test flights and Starlink subscriber growth as potential catalysts for a recovery.
At the same time, concerns over share unlocks and broader market caution have weighed on the stock in recent weeks.
The case for Tesla Tesla, meanwhile, has benefited from stronger operating performance and a more established profitability profile.
The electric vehicle maker continues to lead the global EV market while expanding its energy storage business, one of the company’s fastest-growing segments.
Shares of Tesla are currently trading at $380, supported by optimism surrounding several long-term growth initiatives.
TSLA stock price chart. Source: Finbold Investor focus remains on the expansion of its Robotaxi platform, continued development of Full Self-Driving technology, the rollout of Optimus humanoid robots, and broader AI applications across its products and manufacturing operations.
Unlike SpaceX, which continues to invest heavily in large-scale projects and infrastructure, Tesla generates substantial free cash flow and operates a global manufacturing network with proven commercial scale.
This has helped support investor confidence despite increasing competition in the EV sector.
The narrowing gap reflects differing investor preferences. SpaceX is viewed as a high-growth play on space and satellite infrastructure, while Tesla combines established revenue streams with growth opportunities in autonomy, robotics, and AI.
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Great companies are often launched by great leaders -- but often they don't stay that way. Larry Page and Sergey Brin founded Google, which is now known as Alphabet. Apple had Steve Jobs. Microsoft had Bill Gates. Jeff Bezos ruled Amazon. All four companies continue to prosper under new leadership.
But then you have a handful of leaders who continue to helm the companies they led to greatness, such as Elon Musk and Tesla (TSLA 2.47%). Tesla has grown into a dominant electric vehicle company, largely due to Musk's personality and vision, which have attracted legions of so-called "Musk fanboys."
Tesla has matured into one of the world's largest companies, with a market capitalization of $1.6 trillion. But Musk's ambitious vision for Tesla, including the Optimus robot and unsupervised full self-driving technology, continues to dominate, keeping Tesla's valuation sky-high.
TSLA PE Ratio (Forward) data by YCharts
There are huge expectations baked into Tesla stock, and the stock price is down 15% so far this year. With the company scheduled to report second-quarter results on July 22, can Elon Musk turn the tide for Tesla?
Tesla at a glance Tesla's core business remains its electric vehicles, including its popular Model 3 and Model Y lines. In the second quarter, Tesla sold 480,126 vehicles, with 467,762 coming from its two most popular lines. Sales in the quarter were up 25% -- a welcome turnaround from 2024 and 2025, when Tesla had annual declines in automotive sales.
But the fastest-growing segment is its services, which include automotive services, Robotaxi, and its full self-driving software subscription. While FSD can currently only be used with a driver behind the wheel, Musk has high hopes that unsupervised FSD will be approved for widespread use at some point. Services revenue jumped 42% in the first quarter from a year ago, reaching $3.74 billion.
However, Tesla's biggest opportunity likely lies in the company's planned Optimus robots. Cathie Wood, head of Ark Invest, has predicted that Optimus will transform both home and factory life in 2028 and 2029 and attributed Tesla's leadership in robotics to Musk's "dogged determination."
Image source: The White House.
Is Tesla a buy before earnings? Like always, there's a lot going on with Tesla. Musk isn't involved with the U.S. government anymore, and the Department of Government Efficiency (DOGE) has disbanded. But Musk is still incredibly busy; he successfully brought his other major company, Space Exploration Technologies, public in June, and there's already speculation that SpaceX and Tesla will merge, perhaps within a year. But even if they don't, SpaceX's work with artificial intelligence, energy storage, data centers, and large language models will, in all likelihood, support Tesla's efforts to perfect unsupervised FSD and make Optimus robots successful.
If Tesla were merely an automaker, I think there would be cause for concern about the stock. Rivian Automotive is rolling out software updates that will pressure Tesla's EV leadership, and Tesla faces significant competition in Asia from Chinese automakers like BYD. However, Tesla is much more than an automotive company -- there's a reason why its shareholders granted Musk an incentive-based compensation package valued at up to $1 trillion. Analysts surveyed by Yahoo Finance have a consensus price target of $425, which represents potential gains of 11.5%.
As Wood and Tesla's legion of retail admirers point out, a bet on Tesla stock is largely a bet on Musk himself. With auto sales up big from a year ago, I'm expecting improved revenue for the quarter, but much of what happens with Tesla will ride on Musk's earnings call with analysts and how well he sells his vision for where the company is headed over the next 12 months.
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Focus will move beyond autos to AI. (0:17) Comi-Con starts Thursday. (1:52) U.S. strikes Iran’s Revolutionary Guard. (2:24)
The following is an abridged transcript:
With earnings season in full swing and Tesla (TSLA) is lined up to report Wednesday.
Analysts expect Tesla to report revenue of $26.4B, EPS of $0.54 and automotive gross margin excluding credits slightly above 18%.
Tesla already disclosed that it delivered 480,126 vehicles in Q2 and produced 451,758. Beyond the core numbers, investor attention will once again center on the updates on autonomy, software, the robotaxi rollout, and AI4-AI5 chips, as well as the capex needed for the company to be a leader in physical AI.
SA Analyst Yiannis Zourmpanos says Tesla enters earnings with momentum on its side.
“The improvement in demand, rising analyst expectations, and strong execution show that the market could be undervaluing the stock’s potential earnings performance,” he added.
But Agar Capital warns a great company does not necessarily mean a great stock.
They argue its market cap of $1.5T is overvalued by $1T for “businesses that still lack commercial scale, complete authorizations, verifiable unit economics, and significant FCF.”
Here's how the rest of the earnings calendar shapes up:
Domino’s Pizza (DPZ) and AMC Entertainment (AMC) report Monday.
Novartis (NVSEF), 3M (MMM), GM (GM) and Halliburton (HAL) are due Tuesday.
Alphabet (GOOG) (GOOGL), Texas Instruments (TXN), IBM (IBM), AT&T (T), ServiceNow (NOW), Philip Morris (PM) and Kinder Morgan (KMI) join Tesla on Wednesday.
Thursday brings reports from Intel (INTC), T-Mobile (TMUS), Lockheed Martin (LMT), Union Pacific (UNP) and Comcast (CMCSA).
American Express (AXP), Verizon (VZ) and Charter Communications (CHTR) close out the week on Friday.
The economic calendar is very light, but this week also brings, AMD's (AMD) Advancing AI event in San Francisco on Wednesday, where CEO Lisa Su is expected to outline the chipmaker's latest AI strategy.
The biennial Farnborough International Airshow begins Monday, with Boeing (BA), Airbus (EADSF), Embraer (EMBJ) and other industry leaders expected to announce aircraft orders and showcase new technologies.
And San Diego Comic-Con kicks off Thursday, with Disney (DIS), Warner Bros. Discovery (WBD), and Apple (AAPL) among the media companies expected to showcase upcoming films and streaming content.
In the news this weekend, the U.S. military launched airstrikes targeting Iran's Islamic Revolutionary Guard Corps on Sunday in retaliation for an attack in Jordan that killed two American service members and wounded four others, further escalating the conflict between Washington and Tehran.
Walmart (WMT) announced that it has removed four bagged iceberg lettuce salad products after receiving a notice from its supplier, Taylor Farms, as recalls tied to a cyclosporiasis outbreak that causes explosive diarrhea widen.
Taylor Farms is one of the largest suppliers of fresh vegetables and packaged salads in North America, serving retailers including not just Walmart (WMT), but Costco (COST) and Whole Foods Market (AMZN) as well as McDonald's (MCD) and Taco Bell (YUM).
And for income investors, Caterpillar (CAT) and Colgate-Palmolive (CL) go ex-dividend on Monday.
Caterpillar pays on August 19 and Colgate-Palmolive on August 14.
Dell (DELL) goes ex-dividend Tuesday, with a July 31 payout date.
Pfizer (PFE) goes ex-dividend on Friday, paying out Sept. 1.
Tesla (TSLA 2.47%) heads into its second-quarter earnings report this Wednesday, July 22, carrying two stories that can't both be right. The electric-car maker just delivered 480,126 vehicles in Q2, up 25% year over year and its highest quarterly total since the third quarter of 2025. Yet the stock sits at about $391 as of this writing, down 22% from its 52-week high of $498.83.
And one Wall Street firm thinks the decline is just getting started. Last week, Wells Fargo raised its Tesla price target to $130 from $125 while keeping its underweight rating. From today's price, that target implies a drop of about 67%.
The firm's reasoning, in essence, is that Tesla is selling more cars than it has in any quarter since the third quarter of 2025 but earning less on each one, with price cuts and rising input costs (memory chips, copper, and lithium among them) eating away the gains.
So, who's right?
Image source: The Motley Fool.
The bull case is already public The strongest evidence for the bulls is volume. Tesla's 480,126 second-quarter deliveries were up 25% from the 384,122 vehicles it delivered in the year-ago quarter.
Delivery growth is also accelerating, up from a 6% year-over-year increase in the first quarter. After a long stretch of shrinking vehicle sales, growth is back.
The rest of the business is moving again, too. First-quarter revenue rose 16% year over year to $22.4 billion, with services and other revenue climbing 42%.
And after a soft first quarter in which energy revenue fell 12% year over year, energy storage deployments rebounded to 13.5 gigawatt-hours in Q2, up 41% from the year-ago period and up sharply from 8.8 gigawatt-hours in Q1.
Even the businesses investors are really paying up for are progressing. Tesla launched unsupervised robotaxi rides in Dallas and Houston in April, and it received approval for Full Self-Driving (Supervised) in the Netherlands the same month. Its active Full Self-Driving (Supervised) subscriptions reached 1.28 million in the first quarter, up 51% year over year.
And the company has the resources to keep funding its ambitions in autonomy and robotics. Tesla ended Q1 with $44.7 billion in cash, cash equivalents, and short-term investments, up from $44.1 billion at the end of 2025.
That's an improving picture, and I don't think the bears can dismiss it.
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The bear case, in numbers The problem, as Wells Fargo frames it, is what all of that volume actually earns.
Tesla's first-quarter operating margin was just 4.2%, down from 5.7% in the fourth quarter of 2025. Net income was $477 million on $22.4 billion of revenue, which works out to earnings per share of $0.13. Over the trailing 12 months, Tesla has earned $1.09 per share.
At about $391, then, the stock trades at about 360 times earnings.
That is the entire debate in one number. A multiple like that isn't pricing in a good quarter on Wednesday. It's pricing in years of things going right, including a robotaxi business that scales into a major profit stream while the core car business stays healthy the whole way.
And consider this detail. Even at Wells Fargo's $130 target, Tesla would still trade at about 120 times earnings. In other words, even the bear case values Tesla like a premium growth company -- that's how much optimism is baked into today's price.
The honest answer is that Wednesday's report can't fully settle this. After all, the bear case is about profits, and the bull case, so far, is mostly about volume. But the report should show which way the gap is closing.
Watch whether operating margin recovers from Q1's 4.2%. Watch what the second-quarter deliveries did to pricing. And watch energy, where a second-quarter rebound in deployments needs to show up in revenue and profit, too.
I don't expect a 67% plunge. A decline like that would probably require the market to stop paying for Tesla's autonomy story almost entirely, and the company keeps making measurable progress on it. But Wells Fargo's underlying framing, I think, is the right one. At this valuation, deliveries alone aren't enough. Profits have to follow.
Until they do, I wouldn't buy the stock ahead of Wednesday's report.
If Tesla can show margins turning up while deliveries grow, the bulls will have earned the next word. If it can't, a 22% discount from the high may not turn out to be much of a discount at all.
If you bought YieldMax TSLA Option Income Strategy ETF (NYSEARCA:TSLY) for the double-digit yield, look at your account. The distributions landed. The share price did not follow Tesla up the mountain. That gap is the hidden cost, and it is bigger than the expense ratio.
What You’re Actually Paying TSLY is a synthetic covered-call fund on Tesla. It parks cash in Treasury bills, sells call options on TSLA, and hands the option premium back to you as distributions. That works when Tesla trades sideways. It quietly punishes you when Tesla runs.
Here is the receipt. Over the past year, Tesla stock is up 31.59%. TSLY is up 34.01% on a total-return basis, which sounds fine until you widen the window. Since TSLY’s inception in November 2022, the fund is up 55.36%. Over roughly the same stretch, TSLA is up 86.21% over five years. The share price alone tells the story: TSLY closed at $26.73 on July 10, 2026, while its $17.65 starting NAV starting NAV appears preserved on a total-return basis only because distributions are re-added. Strip out the distributions, and the share price has bled.
The fund’s public expense ratio is not disclosed in the current snapshot data, but YieldMax funds in this category typically carry elevated fees relative to holding the underlying directly (0.99% management fee, verify before publishing). Compare that to holding TSLA directly at brokerage cost of zero. Over a decade, that fee drag alone could compound into a meaningful haircut, and that is before the opportunity cost stacked on top.
The Part the Factsheet Doesn’t Highlight Look under the hood. As of April 30, 2026, TSLY held roughly $877 million in Treasury bills across five CUSIPs, plus a small pile of TSLA call options. That is your “Tesla exposure”: T-bills and a synthetic overlay. The fund also carries $84.8 million in liabilities against $922 million in assets, with net derivative positions running at -7.67% of net assets. When Tesla rallies past the strike, those short calls owe money, and the NAV takes the hit.
Then there is the distribution machine. TSLY paid $13.29 per share over the trailing 12 months, but the forward annualized run rate has compressed to $3.33. In 2024, monthly checks ran between $0.40 and $1.29. In 2026, they have shrunk to weekly payments mostly between $0.26 and $0.35, with one payout at just $0.0707. A meaningful slice of these distributions in prior years arrived as return of capital, meaning the fund handed you back your own money and called it yield. That is not tax-free forever. It lowers your cost basis and defers a bill.
The Cheaper Mirror The low-cost alternative is TSLA itself. Zero management fee at most brokers, no capped upside, no synthetic overlay, no weekly 1099 complexity. If income is the goal, a barbell of short-duration Treasuries (iShares 0-3 Month Treasury Bond ETF (NYSEARCA:SGOV) or SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEARCA:BIL), both low-cost) plus a modest direct TSLA position replicates the fund’s actual balance sheet more transparently, at a fraction of the cost, and lets you keep the upside above whatever strike TSLY happens to be shorting that week. The trade-off is clear: you give up the automatic call-writing convenience and the headline yield figure.
What This Means for You The right question is: what did I give up to get that yield? If TSLY’s distributions have been landing in your account while its share price grinds lower and Tesla stock keeps making highs, you have already paid the hidden cost. Whether the yield is worth capped upside, NAV decay, and taxable return-of-capital is a decision to make with your eyes open, not the marketing sheet.
Contact [email protected] for any questions or corrections.
Tesla has spent the first half of 2026 pulling back from December highs. Our proprietary model answers the key question: where does the risk-reward stand from here?
Tesla (NASDAQ: TSLA | TSLA Price Prediction) trades at $391.06 as of July 16, 2026. Our 24/7 Wall St. price target for Tesla is $439.50, implying 12.39% upside over the next 12 months. The recommendation is buy, with high (90%) model confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $391.06 24/7 Wall St. Price Target $439.50 Upside 12.39% Recommendation BUY Confidence Level 90% A Pullback From December Highs Tesla is down 3.81% over the past week and 13.04% year to date, but still up 21.57% over 12 months. The stock sits 15% below its 52-week high of $498.83.
Fundamentals tell a constructive story: Q1 2026 revenue rose 15.78% year over year to $22.39 billion, non-GAAP EPS of $0.41 topped expectations, and automotive gross margin expanded to 21.1% from 16.2%. Free cash flow jumped 117% to $1.44 billion, and FSD paid subscribers hit 1.28 million, up 51%.
The Case for $493 and Higher Our bull scenario points to $492.94, a 26.05% total return. Catalysts include Cybercab production has just started, Semi ramps this year, and CFO Vaibhav Taneja’s guidance to “over $25 billion of CapEx” in 2026 for six factories, AI infrastructure, and Terafab.
Elon Musk described unsupervised FSD reaching customer cars “probably in the fourth quarter” and Optimus as “the biggest product ever”. Robotaxi is live in Austin, Dallas, and Houston with zero reported incidents. Polymarket traders assign an 81.5% probability to Tesla beating its next earnings report.
What Could Push Shares to $383 Our bear case lands at $383.32, a 1.98% decline. Tesla is priced for perfection at a trailing P/E of 357, and energy storage revenue fell 12% YoY in Q1, with regulatory credits sliding to $380 million. Operating expenses grew 37% YoY as AI R&D and Musk’s CEO stock-based comp hit the P&L.
Bulls counter that OpEx growth is investment: operating income still jumped 135.84%, and Taneja acknowledged Tesla is “in a very big capital investment phase” that supports future revenue. Insider selling has been notable, with 30 recent insider transactions skewed toward sales.
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How Tesla Stacks Up Against Rivian and Ford Rivian (NASDAQ: RIVN) is the closest pure-play EV comparable. Rivian’s $24.67 billion market cap, Q1 2026 revenue of $1.38 billion, and adjusted loss of $0.54 per share show how far Tesla leads on scale and profitability.
Rivian guides to a $1.8 to $2.1 billion EBITDA loss in 2026, making Tesla’s premium multiple defensible.
Ford (NYSE: F) offers a valuation counterpoint. Ford’s Q1 2026 EPS of $0.66 on $43.25 billion in revenue dwarfs Tesla in absolute earnings, yet Ford’s market cap is $55.5 billion.
Ford also pays a 5.4% dividend yield. That contrast frames Tesla as an autonomy and robotics play rather than a traditional automaker. Our 24/7 Wall St. price target is reasonable in that context.
Tesla Price Prediction 2026-2030 Tesla’s 24/7 Wall St. price target of $439.50 and buy rating at 90% confidence rest on expanding auto margins, FSD subscription growth, and a mid-range entry point. The bull thesis strengthens if Cybercab and Robotaxi hit 2026 milestones. The risk case builds if OpEx growth outpaces revenue into 2027.
Year 24/7 Wall St. Price Target 2026 $439.50 2027 $478.00 2028 $515.00 2029 $550.00 2030 $584.82 Our five-year base case projects Tesla at $584.82 by July 2031, a 49.55% total return. These projections assume Tesla executes on autonomy, energy, and Optimus. Meaningful upside or downside could result from unsupervised FSD approval timing in China and Europe.
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Allspring Global Investments Holdings LLC raised its holdings in Tesla, Inc. (NASDAQ:TSLA – Free Report) by 3.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 279,371 shares of the electric vehicle producer’s stock after acquiring an additional 9,770 shares during the period. Allspring Global Investments Holdings LLC’s holdings in Tesla were worth $106,513,000 at the end of the most recent quarter.
A number of other institutional investors have also bought and sold shares of the business. Brighton Jones LLC raised its stake in Tesla by 11.8% during the 4th quarter. Brighton Jones LLC now owns 87,929 shares of the electric vehicle producer’s stock worth $35,509,000 after acquiring an additional 9,293 shares in the last quarter. Revolve Wealth Partners LLC lifted its position in Tesla by 21.2% during the fourth quarter. Revolve Wealth Partners LLC now owns 5,317 shares of the electric vehicle producer’s stock worth $2,147,000 after buying an additional 931 shares during the period. Bison Wealth LLC grew its holdings in shares of Tesla by 52.2% during the 4th quarter. Bison Wealth LLC now owns 10,368 shares of the electric vehicle producer’s stock worth $4,187,000 after purchasing an additional 3,558 shares during the period. Sivia Capital Partners LLC increased its position in Tesla by 9.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 12,135 shares of the electric vehicle producer’s stock worth $3,855,000 after purchasing an additional 1,011 shares in the last quarter. Finally, AGP Franklin LLC raised its holdings in shares of Tesla by 21.2% during the 2nd quarter. AGP Franklin LLC now owns 4,861 shares of the electric vehicle producer’s stock valued at $1,544,000 after buying an additional 851 shares during the period. 66.20% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Tesla In other news, Director Kathleen Wilson-Thompson sold 26,409 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the transaction, the director owned 48,399 shares of the company’s stock, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the completion of the sale, the chief financial officer owned 22,039 shares of the company’s stock, valued at $8,864,085.80. This trade represents a 10.57% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 32,015 shares of company stock worth $12,383,640. Corporate insiders own 19.90% of the company’s stock.
Tesla Stock Down 2.6% TSLA opened at $380.79 on Friday. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62. The firm’s fifty day moving average price is $409.41 and its two-hundred day moving average price is $406.00. The company has a market capitalization of $1.43 trillion, a P/E ratio of 349.35, a P/E/G ratio of 14.05 and a beta of 1.80. Tesla, Inc. has a fifty-two week low of $297.82 and a fifty-two week high of $498.83.
Tesla (NASDAQ:TSLA – Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.02. The firm had revenue of $22.39 billion during the quarter, compared to the consensus estimate of $22.96 billion. Tesla had a return on equity of 4.89% and a net margin of 3.95%.The business’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.27 EPS. On average, analysts anticipate that Tesla, Inc. will post 1.32 EPS for the current year.
Wall Street Analysts Forecast Growth A number of equities research analysts have recently weighed in on TSLA shares. Robert W. Baird lowered their price target on Tesla from $538.00 to $522.00 and set an “outperform” rating for the company in a report on Friday, April 24th. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of Tesla in a research note on Wednesday, June 24th. Morgan Stanley increased their target price on shares of Tesla from $415.00 to $417.00 and gave the company an “equal weight” rating in a research note on Tuesday. China Renaissance dropped their target price on shares of Tesla from $382.00 to $372.00 and set a “hold” rating on the stock in a research report on Monday, April 27th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Tesla in a research report on Monday, June 1st. Twenty-one research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $408.07.
View Our Latest Stock Report on Tesla
Tesla News Summary Here are the key news stories impacting Tesla this week:
Positive Sentiment: Bank of America reiterated a Buy rating and a $460 price target, citing rapid robotaxi expansion, better-than-expected deliveries, and upcoming Optimus milestones. Positive Sentiment: Analysts and investors continue to focus on Tesla’s robotaxi, Cybercab, and Optimus programs, which remain major long-term growth catalysts. Positive Sentiment: Erste Group raised its FY2026 earnings estimate for Tesla, signaling at least some improving expectations heading into the report. Neutral Sentiment: Wall Street expects a sizable earnings-driven stock move, with options pricing implying elevated volatility around the report. Neutral Sentiment: Recent coverage highlights that Tesla’s quarterly delivery strength has not yet translated into a sustained stock rebound, suggesting investors want more than just beat-and-raise narratives. Negative Sentiment: Broader AI and high-growth tech weakness is weighing on Tesla, as investors worry about stretched valuations and cooling enthusiasm for expensive megacap names. Negative Sentiment: Several reports point to skepticism around Tesla’s valuation, with commentary noting the stock could be vulnerable if earnings, margins, or guidance disappoint. Negative Sentiment: Competitive and regulatory headwinds remain in focus, including tougher EV competition in Europe, a denied NHTSA petition over a headlight recall issue, and ongoing scrutiny of Tesla’s autonomy claims. Tesla Company Profile (Free Report)
Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.
Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.
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The IPO of Space Exploration Technologies (SPCX 5.41%) may have been a record-breaking spectacle that captured the attention of investors worldwide, but it's been a roller-coaster ride ever since.
The stock is trading at around $135 per share as of this writing, a far cry from the $225 it commanded in its earliest trading days last month.
While SpaceX is still trying to find its footing in the public markets, Elon Musk's other mega company, Tesla (TSLA 2.47%), just posted its best sales quarter in years. So is Tesla a better buy in the second half of 2026? My prediction is that it is absolutely the better company for investors right now.
Image source: The Motley Fool.
It's all about valuation Valuation is the biggest reason Tesla is a better second-half buy for this year. SpaceX is newly public, and history tells us IPOs tend to underperform in their first three to five years. I don't believe SpaceX will buck that trend, and its nearly $2 trillion market cap leaves very little room for error.
Based on what is known about SpaceX's revenue, even trading below its IPO price, the stock is still about 100 times the company's sales. While Musk and his team have made strategic moves and acquisitions to close the gap, I don't believe it'll be enough to justify the price for several more years.
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Tesla, on the other hand, crushed second-quarter analysts' delivery expectations as well as its own, serving up more than 480,000 vehicles. This breakout quarter could be a sign of a turnaround for Tesla regarding both Musk's reputation and EV demand.
Tesla still faces plenty of headwinds. Many legacy automakers have scaled back or abandoned their EV initiatives as demand stalled in recent years. With the elimination of the federal tax incentive, the EV industry took a hard hit, but that could change as states add their own tax breaks for electric car buyers.
Tesla's forward P/E is still quite rich at 172 and is based more on autonomous driving technology than current car sales. Tesla also faces increasing competition in the space.
An energetic growth engine More importantly, Tesla has a growth catalyst outside of its cars and robotics divisions. Tesla Energy could be the real winner as data centers continue to pop up in the U.S. and beyond. The potential here is enormous and imminent. Tesla's Megapack is an integrated battery system that provides clean, reliable, and cost-effective energy storage to stabilize grids and prevent outages.
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As data centers receive backlash for their energy consumption, Tesla's solutions become even more relevant.
Regarding future opportunities and potential, I have to give SpaceX the edge here, as space is literally infinite. Still, I can't imagine buying the stock right now at its current price. Investors looking for Musk-related upside but with slightly less risk and a longer track record would do well to buy and hold Tesla right now.
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.
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.
Tesla (TSLA 2.47%) investors already know the headline numbers for the second quarter. The electric vehicle and energy company said earlier this month that it delivered 480,126 vehicles during the period, up about 25% year over year and more than it has delivered in any second quarter in its history. It also deployed 13.5 gigawatt-hours (GWh) of energy storage products, up about 41% from the year-ago period.
What investors don't know yet is what those record deliveries did to Tesla's profitability. That answer arrives on Wednesday, July 22, when the company posts its second-quarter results after market close, followed by a live management webcast at 5:30 p.m. ET.
With the stock closing Wednesday at $394.46, down about 12% year to date, Tesla commands a market capitalization of about $1.5 trillion and trades at about 360 times earnings. Investors paying that kind of premium aren't buying delivery counts. They need evidence that Tesla can turn all this volume into profit.
That's why I think one line in next week's report matters more than any other: automotive gross margin excluding regulatory credit sales.
Tesla Cybercab. Image source: Tesla.
A four-quarter streak Tesla's core profitability has quietly improved for a full year now. The company's automotive gross margin excluding regulatory credits was 12.5% in the first quarter of 2025. It climbed to 15% in the second quarter, 15.4% in the third, 17.9% in the fourth, and 19.2% in the first quarter of 2026.
That's four consecutive quarters of expansion.
This metric is worth attention because it strips out regulatory credits, the emissions credits Tesla sells to other automakers. That revenue is nearly pure profit, but it says nothing about the economics of building cars. And its contribution is shrinking anyway -- credits added 3.7 percentage points to Tesla's automotive gross margin in the first quarter of 2025, but just 1.9 points a year later.
However, there is a caveat in the streak. Tesla said its first-quarter results included one-time benefits related to warranty adjustments and tariffs, which helped both its automotive margin and its 4.2% operating margin.
So the July 22 report has to do two things at once. It has to show that the margin held up near 19% on record volume, and it has to show that Tesla managed this without one-time help.
If the margin excluding credits holds in the high teens, the bull case gets simpler. It would mean Tesla just posted its best second quarter of deliveries ever while preserving the pricing gains and cost work of the past year.
If the number steps back toward the mid-teens, the record quarter looks bought (volume achieved through discounts), and the profit story supporting a $1.5 trillion valuation arguably gets much harder to tell.
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What about robotaxi and energy? Plenty of investors will listen for other things on the call, and reasonably so.
Tesla's energy business deployed 13.5 GWh of storage in the quarter, its second-biggest quarter ever behind the 14.2 GWh it deployed in the fourth quarter of 2025. The segment carried a gross margin of nearly 40% in the first quarter, making it a meaningful profit contributor. Still, energy revenue actually declined 12% year over year in Q1, so deployments alone don't guarantee segment growth.
Then there's autonomy. Tesla ended the first quarter with 1.28 million active Full Self-Driving (Supervised) subscriptions, up 51% year over year, and it launched unsupervised robotaxi rides in Dallas and Houston in April. A subscription base growing that fast is exactly the kind of high-margin revenue the valuation needs more of, so any update on robotaxi expansion or software take rates could move the stock, too.
But those initiatives are still mostly about 2027 and beyond. The margin line shows whether today's business, the one funding all of those bets, is getting more profitable or less as it scales. At 360 times earnings, Tesla doesn't have the luxury of letting profitability drift while investors wait for autonomy.
So when the report lands on July 22, the delivery recap won't be the news -- investors already have it. The number worth finding is the automotive gross margin excluding regulatory credits. If the streak extends to five quarters without one-time help, record deliveries and improving profitability would make a powerful combination. If it doesn't, investors may opt to treat the record quarter far less kindly.
The firm notes that Tesla has added Miami as its fifth robotaxi market and is scaling its Texas fleet at the fastest pace among operators it tracks. The combination matters because it shifts Tesla’s story from promise to visible expansion, even if the network is still early and uneven.
TSLA stock is moving. See the chart and price action here. Tesla Adds Robotaxi Markets and VehiclesTesla’s Texas fleet now stands at 175 vehicles, up by more than 100 in the past month, according to the note. That kind of growth gives Tesla a stronger case that its robotaxi effort is more than a demo. It is building an actual operating footprint.
Bank of America also points out that Tesla now has four additional markets in preparation, which suggests the company is still pushing toward the original goal of nine cities by the first half of 2026. Miami’s launch adds another proof point that Tesla wants to expand quickly while interest in autonomous driving remains high.
The robotaxi push is only one part of the bull case. Tesla’s second-quarter deliveries came in around 480,000, far above Street expectation. BofA also says the company likely gained global battery-electric vehicle share which helps offset worries that the core auto business is slowing.
The TakeawayBank of America kept its Buy rating and $460 price target on TSLA. The firm views Tesla as trying to turn autonomy into a real business while the EV business still supports the base case.
For now, the most important question is whether the company can keep adding markets, vehicles and usage fast enough to justify its robotaxi ambition.
TSLA Stock Price Activity: Tesla stock was down 2.32% at $381.98 at the time of publication Friday, according to data from Benzinga Pro.
Over the past month, TSLA has declined about 5.0% versus a 0.9% decline in the S&P 500 and is down roughly 17% year-to-date compared to the index’s 8.5% gain.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Agility Robotics is opening a 60,000-square-foot facility to train its humanoid robots in Fremont, California, just up the highway from the factory where Tesla is expected to start manufacturing its Optimus robots this year.
Tesla has increasingly bet on Optimus. Elon Musk recently said he expects it to be “the biggest product ever” once it’s “useful outside of Tesla sometime next year.”
While Agility doesn’t have Tesla’s capital, it does have a robot, Digit, that is already useful in the real world. The robot is already generating revenue, carrying totes and bins in manufacturing and warehouse settings for customers like Amazon, GXO, Schaeffler, and Toyota Motor Manufacturing Canada. The company says it has secured $300 million in contract orders for its robots.
“It’s great to have [Tesla] in the same area as us, because really, for a long time Agility was out there alone, and it’s good to have others in the humanoid space,” CEO Peggy Johnson told TechCrunch. “We have commercialized. We now know what it takes to walk into these facilities and meet their safety bars, their regulatory bars, compliance, plug into their IT infrastructure, plug into their warehouse management system.”
Agility hasn’t disclosed how many Digits that it has built or deployed, but outside observers estimate that dozens have worked in pilot or revenue-generating deployments. The company has said, for example, that Digits have moved 100,000 totes at a GXO logistics facility.
Johnson is currently leading Agility through a reverse-merger that is expected to make it the first pure-play humanoid robot company on the public markets later this year. Founded in 2015 by a group of researchers who developed new techniques that allow robots to safely walk on two legs, Agility is trying to capitalize on its lead over a newer generation of AI-inspired robotic startups like Figure, 1X, the Bot Company, or Sunday Robotics.
While the arrival of transformer-based neural networks that helped give rise to LLMs also promises major advancements in robotic behavior, Agility is taking a practical approach to autonomy.
“When you think about self-driving cars, you know, as a non-humanoid example, you really don’t want the anti-lock brake controller under AI control,” Agility co-founder and chairman Damion Shelton told TechCrunch. “The analog with humanoids is all the safety stuff needs to go through a path that’s not generative AI, right? You don’t want to get creative with your safety stack.”
What AI does do, however, is deliver on the promise of scale.
“One of the first times [Bruce Leak, the Quicktime inventor who serves on Agility’s board] asked us how we were going to go about coding applications for the robot, we didn’t really have a good answer,” Shelton said. “The number of things you can imagine a robot doing is far larger than the number of engineers who can program robots. And generative AI answers that question definitively.”
The new facility is designed to accelerate the company’s robotic deployments. Johnson says more than 30 customers are in talks with the company about deploying Digit, and the new facility will be where the six-foot-tall robot learns new skills in environments similar to those it will experience in the field.
Unlike many of the newer entrants to the humanoid space, Agility isn’t planning to offer in-home humanoid robots anytime soon. It’s a view that jibes with that of most independent robotics experts, who believe today’s most powerful robots aren’t safe enough for consumer use. Digit operates in a human-free space right now, but the version 5, expected to be unveiled this fall, will have the ability to sense humans and won’t need to be kept in a robot-only zone.
Co-founder and chief robot officer Jonathan Hurst said there is plenty of work to keep Agility busy in manufacturing and logistics alone.
“Let’s start with the bins and the totes, and then let’s do the picking and the kitting,” Hurst told TechCrunch. “And then let’s like start working on cardboard, which is really hard, and loading and unloading tractor trailers and things like that. Okay, now we’re at 100 million robots, you know? A trillion-dollar company.”
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Tim Fernholz is a journalist who writes about technology, finance and public policy. He has closely covered the rise of the private space industry and is the author of Rocket Billionaires: Elon Musk, Jeff Bezos and the New Space Race. Formerly, he was a senior reporter at Quartz, the global business news site, for more than a decade, and began his career as a political reporter in Washington, D.C. You can contact or verify outreach from Tim by emailing [email protected] or via an encrypted message to tim_fernholz.21 on Signal.
Tesla Inc (NASDAQ:TSLA) is heading into its second-quarter earnings report with robotaxis doing most of the talking.
Bank of America reiterated its Buy rating on the stock and $460 price objective, pointing to the service's rapid expansion, a delivery number that blew past Wall Street estimates, and looming production milestones for the company's Optimus humanoid robot.
The bank said investor focus will center on the pace of robotaxi fleet scaling and new market launches. Tesla now operates in five markets following its July 3 launch in Miami, though its San Francisco service still requires a safety driver. Four additional markets are in preparation, compared with the company's original target of nine cities by the first half of 2026.
Tesla's Texas fleet has scaled quickly, adding more than 100 vehicles over the past month to reach 175, the fastest growth among the robotaxi operators Bank of America tracks. Safety data has remained compelling, with 22 incidents recorded through mid-June since the service's inception and no serious injuries or fatalities. A San Francisco pricing study the bank conducted in June found Tesla was 21% cheaper on average than Waymo, Uber and Lyft, though wait times ran three to four times higher, suggesting demand is outpacing supply.
On the core auto business, Tesla reported second-quarter deliveries of approximately 480,000 vehicles, above consensus estimates of about 406,000 and up 25% year-over-year. That compares with S&P forecasts for global battery electric vehicle sales growth of 15% year-over-year, suggesting Tesla gained roughly 95 basis points of BEV market share. U.S. share rose 50 basis points year-over-year to 46.1% in the quarter.
Bank of America also flagged upcoming updates on Optimus. Tesla is targeting initial production at Fremont for late July or August, around the same time as a possible Gen 3 reveal, with Giga Texas production expected around summer 2027. The bank expects a slow ramp but sees long-term opportunity, forecasting global humanoid shipments of 1.2 million units by 2030 and 10 million by 2035.
Beyond Optimus, the bank expects focus on energy storage following Tesla's agreement with NatPower for 25 GWh using its Megapack system. Tesla remains the leading battery energy storage systems company in the U.S., an area now drawing entrants including Ford, General Motors and BorgWarner.
Bank of America said Tesla is in the early stages of monetizing its autonomy capabilities, which it views as the most significant change agent in the shift toward autonomous, electric transportation.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) sits at the intersection of electric vehicles, autonomous driving, energy storage, and humanoid robotics, and the setup into 2027 is one of the most watched in the market. With shares changing hands at $397.92 and a model that just finalized the design of the AI5 inference processor alongside pilot production of Cybercab, the question retail investors keep asking is straightforward: what could a $10,000 stake actually be worth a year from now?
The Headline Answer Under the base-case model, a $10,000 investment in Tesla could be worth about $11,082 by 2027, a total return of 10.82%. That base case is anchored to a modeled 1-year share price target of $440.95, with a model confidence level of 90% and a BUY recommendation. Wall Street’s own consensus analyst target sits at $425.24, roughly in line with the base scenario.
Scenario Table: What $10,000 Could Become by 2027 Scenario Target Share Price Total Return Ending Value of $10,000 Bull (Optimistic) $493.69 24.07% $12,407 Base $440.95 10.82% $11,082 Bear (Conservative) $384.29 -3.42% $9,658 The spread is wide because Tesla’s beta is 1.802, meaningfully more volatile than the broader market. The current share price sits 15% below the 52-week high of $498.83, with the 52-week low at $297.82. Traders on Polymarket are also digesting this range in real time, with the crowd assigning a 64.5% probability that Tesla beats the next quarterly earnings print.
The Why: Three Drivers Behind the Target 1. Analyst consensus is skewed constructive. Of the covering analysts, 5 rate the stock Strong Buy, 18 Buy, 18 Hold, 4 Sell, and 2 Strong Sell. Bullish sentiment sits at 49% versus bearish at 13%. That mix supports the base case rather than the bull case, which is why the modeled target lands below the highest scenario.
2. Fundamentals are inflecting. Q1 FY2026 delivered a 14.14% EPS beat at $0.41, with revenue of $22.387 billion growing 15.78% year over year. Automotive gross margin expanded to 21.1% from 16.2% a year earlier, GAAP operating income rose 135.84%, and FSD active subscriptions climbed 51% to 1.28 million. Free cash flow more than doubled to $1.444 billion.
3. The catalyst stack is heavy. Volume production of Cybercab, Tesla Semi, and Megapack 3 is targeted for 2026, Optimus production lines are being installed at Fremont with a designed capacity of 1 million robots per year, and unsupervised Robotaxi rides launched in Dallas and Houston. FSD was approved in the Netherlands, opening a European regulatory path.
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For investors trying to size how AI compute and autonomy actually flow through to shareholder returns beyond just the chipmakers, this research on stocks powering the AI boom that aren’t chipmakers offers a useful framework for thinking about the second-order beneficiaries.
Risk: What Could Sink the Projection The bear case has real teeth. Vehicle deliveries grew just 6% year over year in Q1, global vehicle inventory rose to 27 days of supply from 22, and energy generation and storage revenue fell 12% year over year. Operating expenses grew 37% YoY on AI R&D and CEO stock-based compensation. Battery pack capacity remains a physical constraint on vehicle ramp, FSD approvals in China are still pending, and tariff exposure is a moving target. The stock also trades at a trailing P/E of 357, leaving little room for execution slippage.
Long-Term Context Zoomed out, the model’s 5-year base case points to $575.69 per share, a 44.68% total return, with a bull path to $685.30 (72.22%) and a bear path of just 7.21%. Investors weighing a 2027 entry are effectively deciding whether to underwrite the year in which Optimus, Cybercab, and Robotaxi transition from pilots into revenue.
The Bottom Line For a $10,000 stake, the modeled range by 2027 runs from about $9,658 in the bear case to $11,082 in the base case and $12,407 in the bull case, anchored to a base 1-year target of $440.95 and confidence of 90%. That is a scenario framework, not a promise. Analyst targets and model outputs are projections, not guarantees, and nothing here is personalized investment advice. Tesla’s next twelve months will be decided by execution on autonomy and robotics, and the dollar outcome for your stake will follow.
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Tesla Inc (NASDAQ:TSLA) is heading into its second-quarter earnings report with robotaxis doing most of the talking.
Bank of America reiterated its Buy rating on the stock and $460 price objective, pointing to the service's rapid expansion, a delivery number that blew past Wall Street estimates, and looming production milestones for the company's Optimus humanoid robot.
The bank said investor focus will center on the pace of robotaxi fleet scaling and new market launches. Tesla now operates in five markets following its July 3 launch in Miami, though its San Francisco service still requires a safety driver. Four additional markets are in preparation, compared with the company's original target of nine cities by the first half of 2026.
Tesla's Texas fleet has scaled quickly, adding more than 100 vehicles over the past month to reach 175, the fastest growth among the robotaxi operators Bank of America tracks. Safety data has remained compelling, with 22 incidents recorded through mid-June since the service's inception and no serious injuries or fatalities. A San Francisco pricing study the bank conducted in June found Tesla was 21% cheaper on average than Waymo, Uber and Lyft, though wait times ran three to four times higher, suggesting demand is outpacing supply.
On the core auto business, Tesla reported second-quarter deliveries of approximately 480,000 vehicles, above consensus estimates of about 406,000 and up 25% year-over-year. That compares with S&P forecasts for global battery electric vehicle sales growth of 15% year-over-year, suggesting Tesla gained roughly 95 basis points of BEV market share. U.S. share rose 50 basis points year-over-year to 46.1% in the quarter.
Bank of America also flagged upcoming updates on Optimus. Tesla is targeting initial production at Fremont for late July or August, around the same time as a possible Gen 3 reveal, with Giga Texas production expected around summer 2027. The bank expects a slow ramp but sees long-term opportunity, forecasting global humanoid shipments of 1.2 million units by 2030 and 10 million by 2035.
Beyond Optimus, the bank expects focus on energy storage following Tesla's agreement with NatPower for 25 GWh using its Megapack system. Tesla remains the leading battery energy storage systems company in the U.S., an area now drawing entrants including Ford, General Motors and BorgWarner.
Bank of America said Tesla is in the early stages of monetizing its autonomy capabilities, which it views as the most significant change agent in the shift toward autonomous, electric transportation.
Second-quarter earnings season is ramping up with the third week of July slated to bring some high-profile reports, including one from Elon Musk’s Tesla, Inc. (TSLA). The electric vehicle giant is scheduled to deliver its latest batch of quarterly results on Wednesday, July 22, after the close of U.S. markets.
Earnings reports are often opportune times for short-term traders to consider inverse and leveraged ETFs. When it comes to Tesla, the Direxion Daily TSLA Bull 2X Shares (TSLL) and the Direxion Daily TSLA Bear 1X Shares (TSLS) are the funds to evaluate. TSLL attempts to deliver 200% of the daily performance of the widely followed automotive stock. Conversely, TSLS targets the daily inverse performance of Tesla shares, offering a tactical tool for bearish traders.
With solid second-quarter deliveries already priced into Tesla stock, traders are looking ahead to other catalysts, such as free cash flow.
“We will pay close attention to Tesla’s free cash flow metrics as the company begins a heavy capital expenditure investment cycle to build the infrastructure required for its real-world artificial intelligence products,” noted Morningstar’s Seth Goldstein.
More Catalysts to Consider Other variables that could jolt either TSLL or TSLS — assuming they’re included in Tesla’s post-earnings commentary — are robotaxi rollouts and updates on the Optimus robotics endeavor.
“We will also be watching for an update on Tesla’s robotaxi rollout plans. We will look to hear management’s expansion plans, as well as an update on the robotaxi-dedicated Cybercab, which entered production,” said Goldstein.
Optimus is one subject that legitimately has the potential to put either TSLL or TSLS into play. Investor interest in humanoid robotics is surging, especially now as China accelerates its robot production beyond previous expectations.
“We view the project as a large long-term growth driver for Tesla, as it could eventually perform many tasks and be purchased by both businesses and consumers,” observed Goldstein.
Comments on profit margins and updates on cheaper Tesla models could also spark big moves in TSLL and TSLS post-earnings.
“As Tesla ramps up production of its new, lower-priced Model Y and Model 3 vehicles, we expect automotive gross margins, excluding credits, to be in the high teens, slightly below management’s long-term goal of 20%,” concluded Goldstein. “In the long term, we assume Tesla will deliver around 2.8 million vehicles per year by 2030, driven by the adoption of full self-driving software and the more affordable versions of the Model Y and Model 3.”
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Tesla Inc. (NASDAQ:TSLA) shares are in the spotlight as earnings, analyst activity and interesting technicals converge.
Tesla stock is showing weakness. Why is TSLA stock retreating? Earnings History & What To ExpectTesla is scheduled to report second-quarter earnings on July 22. Tesla is expected to post earnings per share of 44 cents and revenue of $25.24 billion. In the most recent quarter, Tesla reported earnings per share of $0.41, beating estimates of $0.30 by 0.37%. Revenue came in at $22.39 billion, exceeding the estimate of $22.17 billion by 0.01%.
Over the last 4 quarters, Tesla has averaged an EPS surprise of 0.19% and a revenue surprise of 0.02%.
Investors should watch automotive gross margin excluding credits, along with operating margin, for evidence that revenue growth is translating into real operating leverage — recent earnings beats have leaned more on profitability improvements than outsized revenue surprises.
FSD and software-related revenue signals, including deferred revenue movement, services growth, and any commentary on take-rate, will also be closely watched, since much of Tesla’s valuation still hinges on a broader software ramp. Delivery volumes and pricing commentary should also offer clues on demand elasticity, since volume growth without pricing power could keep EPS capped even if revenue reaches the $25.24 billion target.
Analyst Consensus & Recent Actions The stock carries a Buy Rating with an average price target of $405.70. Notable recent moves include:
Morgan Stanley: Equal-Weight (Raised Target from $415.00 to $417.00) (July 14) Barclays: Equal-Weight (Raised Target from $360.00 to $370.00) (July 14) Wells Fargo: Underweight (Raised Target from $125.00 to $130.00) (July 14) A Bearish Tilt, But Not A BreakdownTesla is trading below all of its major trend gauges, sitting 3.6% under the 20-day SMA ($398.63), 6.2% below the 50-day SMA ($409.97), and 7.9% below the 200-day SMA ($417.36). That alignment keeps the intermediate trend tilted bearish, especially with the 20-day SMA below the 50-day SMA and the death cross (50-day below 200-day) that formed in April still in place.
Momentum is best framed through RSI, which is at 46.28—neutral, but leaning soft and consistent with a market that’s not showing strong upside pressure. RSI measures how "stretched" a move is, and a mid-40s reading typically signals choppy, two-sided trade rather than a clean trend day.
Key Resistance: $433.00 — a round-number area that can act as an overhead pivot where rebounds may stall Key Support: $380.00 — a nearby round-number level close to current trade where buyers may try to defend the pullback From a longer-term perspective, the stock is still up 22.43% over the past 12 months, but the more recent structure has been weaker after a swing low in April and a swing high in May. Traders will be watching whether price can hold the $380.00 area; losing it cleanly would keep the focus on downside follow-through, while reclaiming the 20-day/100-day area would be an early sign the tape is stabilizing.
Tesla Shares Edge LowerTSLA Price Action: At the time of publication, Tesla shares are trading 1.63% lower at $384.68, according to data from Benzinga Pro.
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You can buy Tesla (TSLA 2.29%) stock now, in the next trading session, or after quarterly earnings results are released on Wednesday, July 22. The main difference comes down to whether you think there's likely to be a catalyst in the results or presentations that could drive the stock higher after the results are announced.
Tesla's electric vehicle deliveries are growing again Tesla releases its delivery numbers at the start of each quarter, and as investors already know, it blew past expectations with 480,126 electric vehicle (EV) deliveries. Automotive revenue still makes up roughly three-quarters of Tesla's revenue, and based on historical numbers, Tesla's average revenue per unit (ARPU) for EVs is likely in the $42,000 to $43,000 range. Therefore, automotive revenue will probably be in the $20.1 billion to $20.7 billion range.
Image source: The Motley Fool.
The midpoint of the range implies a 22% increase on the $16.67 billion reported in the same quarter of 2025. Whichever way you look at it, Tesla is growing its EV deliveries again, which helps confirm that the slowdown in the first half of 2025 really did come down to the Model Y refresh.
What investors need to look out for That said, the key to the investment case is Tesla's future stream of recurring income from full self-driving (FSD) software, Optimus robot-as-a-service revenue, and robotaxi revenue from its own fleet or a third-party robotaxi platform fee.
Consequently, every earnings presentation and earnings call is usually viewed as a kind of report card on the long-term development of Robotaxi and Optimus, in the context of publicly available developments in the quarter. Based on Tesla's last earnings call, it's hard to see the company saying anything revolutionary during the upcoming one.
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Optimus and robotaxi On Optimus, CEO Elon Musk said low-volume production would begin in the "late July/August" time frame, with the unveiling event taking place around then. Clearly, there's potential for Tesla to make a splash by announcing this, but it would merely confirm what management has already said.
Turning to robotaxis, while it's exciting to monitor the rollout, the reality is that an increase of a few robotaxis here or there, or an additional city (Miami was added in July), won't make a marginal difference to what really matters.
On the last earnings call, Musk said:
"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."
Those improvements will come with the release of v15 FSD, which will be a "complete overhaul of the software architecture" and will take safety to "another level." He also noted that v15 would "hopefully" be available this year, "but certainly by early next year."
Image source: The White House.
What to expect from Tesla's earnings presentations We pretty much know the key numbers based on the delivery data. On Optimus, confirmation of production starting/growing and an unveiling announcement would be good. However, the key question is the timeline for v15 development, because there won't be a robotaxi ramp without it.
All told, while Tesla remains an attractive stock for long-term investors, it's hard to see the company making any game-changing announcements on Optimus or robotaxi/v15 during the upcoming earnings presentations. In other words, if you like the stock, there's no need to rush to buy it before the earnings report.
Major tech companies are under pressure in early Friday pre-market trading.
TSLA Technical Analysis
The Tesla daily chart shows price sliding toward the $383 support region after a year of sideways action. Source: TradingView. Tesla looks like it’s going to gap to the downside at the open on Friday as we continue to see risk appetite a little bit threatened by the conflict in the Middle East. And of course, we are approaching earnings season, so it’ll be interesting to see how that plays out.
Tesla has earnings next Wednesday and now finds itself threatening the $383 region, an area that’s been important multiple times in the past. It’ll be interesting to see if there’s any type of pushback here from the buyers. All things being equal, the market has been somewhat sideways for the better part of a year as we are just trying to figure out where to go next.
SPCX Technical Analysis
The SpaceX daily chart shows a steep, uninterrupted slide from its debut high, with no established support yet. Source: TradingView. SpaceX looks very weak early during the trading session on Friday, as we are looking at a gap lower to continue the bloodbath that has been a major factor here. The bottom cannot really be quantified yet because there is no historical price action. One thing is for certain: there are people out there who would love to own this company, but finding the right price is the catch. After all, it is an extraordinarily risky business, and we do not get an earnings call or any guidance until the 6th of August.
With that being said, this is one that is worth watching. It could be a generational investment; we just don’t know. Certainly, it’s a very exciting field, but as things stand right now, it looks like nobody’s willing to pay some of the original exorbitant prices, and as a result, it’s a matter of patience.
The Meta daily chart shows price pulling back from $690 resistance, with the 200-day EMA at $632 the next test. Source: TradingView. Meta looks like it’s going to gap lower at the open on Friday as traders continue to send this market back and forth. The 200-day EMA sits at $632. Meta has been pretty sideways for several months as well. Got a little stretched, looks like it’s giving some of that back.
There are concerns about the global economy and, of course, the tech trade in general. The earnings call is on the 29th, so we have a little bit of time between now and then to fill the gap. We would have to test that 200-day EMA. So who knows, that could be an area where people are willing to get involved. This is a market that continues to see a lot of resistance near $690, which is basically where we’re rolling back from this time as well.
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Say what you will about Elon Musk, but he has never blinked on his Tesla vision.
Through years of skeptics declaring Tesla (TSLA 0.87%) was doomed, he kept promising a future of electric cars, self-driving fleets, and humanoid robots, and he kept plowing money back into those bets.
With the stock slipping below $400 and second-quarter earnings due July 22, some investors are wondering whether this dip is the moment to buy into that conviction.
Image source: The White House.
The founder-led lens There is a reason founder-led companies command loyalty, and Tesla is the textbook case. Musk holds an enormous personal stake and has worked to increase his voting control, which means his fortune rises and falls with the same shares ordinary investors own.
Rather than harvesting profits, he keeps funneling them into ambitious projects: the robotaxi rollout, the Dojo supercomputer, the Optimus robot, and the energy business. To believers, that relentless reinvestment amid constant criticism is the whole point.
It signals an owner playing a decade-long game while Wall Street frets over the next quarter. Founders who refuse to sell their vision have, more than once, been proven right long after the doubters moved on.
The July 22 reality check That is the romantic case. The sober one is that Tesla's most recent quarter showed the tension clearly. Deliveries actually beat expectations, yet the stock fell as investors focused on shrinking margins, softening sales in North America, and the heavy spending required to chase all those moonshots.
The stock still trades at a valuation that assumes the autonomous future arrives more or less on schedule, and Musk's timelines have a long history of slipping. Buying specifically to front-run one earnings report is less an investment than a coin flip, because a single print can swing hard in either direction.
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The takeaway for investors So should you buy the dip before July 22? I would gently separate the two questions tangled up in that headline.
Believing in Musk's founder-led vision is a legitimate, decade-long call, and plenty of investors are comfortable backing a leader who has never wavered. But timing a purchase to a specific earnings date is a different, riskier game, and Tesla's lofty valuation leaves little cushion if the report disappoints.
If you are putting hard-earned savings to work here, the better question is not "before or after July 22," but whether you are willing to own an expensive stock through years of volatility on the strength of a vision that is still unproven. Decide that first, and the earnings date matters a lot less.
Tesla stock (NASDAQ: TSLA) extended its decline heading into Friday as investors questioned whether SpaceX could realistically finance a takeover of Elon Musk’s electric-vehicle company.
Tesla fell 0.9% to $391.06 on Thursday, while SpaceX slid 3.1% to $131.11, below its $135 IPO price.
The parallel weakness matters because any acquisition would probably rely heavily on SpaceX stock.
As that currency loses value, the rocket company would need to issue more shares, increasing dilution and making an already complicated transaction harder to justify.
Tesla was valued at about $1.4 trillion on Thursday, while SpaceX’s retreat from its post-IPO peak has reduced the purchasing power of its equity.
An all-stock acquisition would require SpaceX to create and distribute a substantial block of new shares to Tesla investors.
Gary Black, managing partner of The Future Fund, estimated that such a deal could dilute existing SpaceX holders by roughly 25%.
“At $132 and sinking, SPCX can’t just buy TSLA in a 25% dilutive equity deal,” Black wrote on X.
Those who think $SPCX will buy $TSLA don’t understand the concept of board fiduciary duty. Sure, Elon owns 82% of the SPCX voting control (and 42% of overall SPCX equity) but that doesn’t magically let the SPCX board off the fiduciary hook. At $132 and sinking, SPCX can’t just…
— Gary Black (@garyblack00) July 16, 2026 Dilution does not mean investors immediately lose one-quarter of their money. It means their ownership would be spread across a much larger share count.
The combined company would therefore need to generate enough additional earnings or strategic value to compensate them.
Black has separately warned that conglomerates often inherit the valuation multiple of their slower-growing component.
Under one scenario, he estimated that combining the companies could erase about $750 billion of equity value unless unusually large revenue or cost synergies emerged.
Also read: SpaceX stock has erased all its IPO gains, but a 76% rally may be brewing
Musk’s influence over both companies could shape discussions around any potential transaction, but it would not eliminate the need for independent scrutiny, shareholder protections and a process designed to address conflicts of interest.
Black argued that SpaceX’s board still owes fiduciary duties to shareholders and could not simply disregard the financial effect of a heavily dilutive acquisition.
The related-party conflict would be obvious.
Musk leads Tesla and controls most SpaceX voting power, placing intense scrutiny on the exchange ratio, valuation assumptions, negotiations and any role assigned to independent directors.
SpaceX’s controlled-company status gives Musk exceptional authority, but it does not make minority investors indifferent to price.
The companies already have growing financial links.
Tesla disclosed that it invested $2 billion in SpaceX common stock in March, representing less than 1% ownership.
It also recognised $87 million of first-quarter revenue from SpaceX purchases of Megapack energy-storage products.
Those links strengthen the industrial argument for closer collaboration across energy and computing.
They also make governance more sensitive, because directors would need to distinguish genuine shareholder benefits from transactions that primarily consolidate Musk’s businesses.
Tesla stock is under selling pressure. What’s pulling TSLA shares down? Federal Investigators Point to Driver Error in Fatal Texas CrashThe National Transportation Safety Board published its initial findings Wednesday from a June 19 collision in Katy, Texas, in which a 2025 Tesla Model 3 plowed into a home at speeds exceeding 70 miles per hour along a residential stretch where the posted limit is 30 miles per hour. Martha Avila, a 76-year-old resident of the home, sustained fatal injuries and died at a nearby hospital, according to Reuters.
Data pulled from the vehicle told a clear story: the 44-year-old driver, Michael Butler, had switched on Full Self-Driving before the crash but brought the system’s control to an end by jamming the accelerator pedal to the floor, sending the car surging well beyond any speed the system would have permitted.
The conclusion echoes what Tesla’s vice president of AI software Ashok Elluswamy had already stated publicly on X the prior month, writing that the driver had pushed the accelerator all the way to 100%.
The agency’s preliminary findings land squarely in Tesla’s corner, supporting the company’s longstanding argument that the crash was a product of human intervention rather than a technological failure.
Critical Technical Levels for TSLA to WatchTesla is still working uphill from a trend perspective. It is trading 2.1% below the 20‑day SMA, 4.8% below the 50‑day SMA and 6.5% below the 200‑day SMA, which keeps rallies prone to selling. The 20‑day SMA sitting below the 50‑day SMA shows the short‑term trend has not turned back to bullish.
RSI is the clearest momentum read at 45.85, which signals neutral to soft momentum rather than an oversold snapback setup. In plain terms, RSI gauges whether recent buying or selling has become stretched and this level suggests neither side has a clear advantage.
The bigger‑picture backdrop still leans bearish after the April death cross, with the 50‑day SMA moving below the 200‑day SMA. The April swing low remains an important reference point for dip buyers. May marked the most recent swing high, so bulls need a pattern of higher highs and higher lows to argue the trend is shifting.
Key Resistance: $433.00 — a nearby round‑number zone that can act as overhead supply during rebounds Key Support: $380.00 — a nearby round‑number level close to current trade where buyers may try to defend the pullback TSLA Shares Are DippingTSLA Price Action: Tesla shares were down 1.30% at $389.33 at the time of publication on Thursday, according to Benzinga Pro.
Image: Shutterstock
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Given nothing more than the company's reported numbers, shares of electric vehicle maker Tesla (TSLA 0.87%) should have soared following the July 2 release of its total Q2 deliveries.
The 480,126 automobiles it shipped in Q2 were not only up 25% year over year, but topped analysts' consensus estimate of 406,024 units. Nevertheless, Tesla shares immediately stumbled in response to the report and haven't budged in the meantime, even though the market has made some forward progress during this stretch. What gives?
It's a complicated answer because ... well, there's a complicated dynamic surrounding this company and its stock.
Image source: Getty Images.
The rest of the story In a perfect world, stocks' prices make sense, reflecting the underlying companies' potential and risk. When it's impossible to determine what a company could be worth in the foreseeable future, though, investors' assumptions end up all over the map, just reflecting the market's ever-changing perception of that name.
That's largely what's happening here. While founded as an EV outfit, Tesla's foray into energy storage, robotaxis, solar panels, and now an artificial intelligence robotics business that founder and CEO Elon Musk suggests could be the "biggest product of all time" is making it difficult for investors to figure out what the stock's really worth -- it's a budding AI company that also happens to make electric vehicles. And in this instance, it's difficult to deny that the stock's sizable run-up in late June set the stage for knee-jerk profit-taking, regardless of the delivery numbers the company would ultimately report.
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Complicating matters is that shares are still outrageously priced at more than 170 times projected profits.
In other words, nobody can be too terribly surprised that Tesla shares tumbled when they seemingly shouldn't have. One of this ticker's core current attributes is near-term unpredictability.
That said, the market is also connecting dots that aren't Tesla-specific, yet still paint an alarming picture for the electric vehicle industry. This includes Ford Motors Company's (F +0.07%) 41% tumble in EV sales for the same quarter, when General Motors' (GM +0.10%) fell 33%.
That's mostly the result of the wind-down of EV subsidies within the United States, although Tesla didn't exactly outshine its competition on other fronts either. China's electric vehicle powerhouse BYD (BYDDY +3.16%) bounced back from a disappointing Q1 to reclaim its lead from Tesla in terms of worldwide EV deliveries, shipping 557,090 battery-electric vehicles in Q2. It's not necessarily a direct setback for Tesla. Every EV that makes it to the market, however, crimps Tesla's already-waning pricing power.
No in-between That's the chief challenge of buying, selling, or holding a stake in Tesla, of course. There are as many unknowns as there are knowns, and the market will fill in the blanks with whatever knowns it can find when it finds them. The problem is, these knowns are often quickly replaced by the next ones as they surface -- some bullish, some not. That's not necessarily a bad thing. It's just something to keep in mind.
So is this: If you're considering Tesla for your portfolio, either respect that it's getting blown around by ever-changing near-term narratives, or it's a true buy-and-hold (volatile) EV/AI bet to tuck away for a long, long while. Any intended holding period in between could prove maddening, as we've already seen just this month.
Tesla (TSLA 0.87%) is set to report financials for the second quarter of 2026 on Wednesday, July 22. This is an important time for investors, as the business will provide them with performance updates that can inform portfolio moves.
This "Magnificent Seven" stock has meaningfully underperformed the market in 2026 (down 12.4% compared to the S&P 500's 10.6% gain). But is Tesla a buy before its upcoming financial release?
Image source: The Motley Fool.
To be clear, investors shouldn't make investment decisions solely on the basis of front-running a company's earnings report. This is a short-sighted mentality. It's incredibly rare that any information a business reveals related to a single quarter has a material impact on its long-term investment thesis.
That said, there is still valuable data available to investors to assess whether a company is performing well. In Tesla's case, automotive revenue growth and gross margin, the outlook for capital expenditures, and CEO Elon Musk's commentary on Robotaxi and Optimus developments are incredibly important.
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The question, though, isn't if investors should buy Tesla stock before July 22. The question is whether this stock is worth buying and holding for the next five years.
With this framework in mind, I believe investors are better off avoiding Tesla. The stock's extreme price-to-earnings ratio of 358 underscores how astronomical the market's expectations are, creating an asymmetric opportunity skewed to the downside.
The company deserves credit for tackling ambitious projects that can have a global impact. However, the current setup is not compelling.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Tesla (TSLA 1.17%) has been refocusing its business on robots, aiming to ramp up production of its Optimus humanoid robot. However, this is part of a broader push for autonomous machines, including self-driving cars. As usual, CEO Elon Musk has lofty aspirations, but investors need to put them into perspective. And the recent launch of Tesla's Robotaxi services in Miami offers just the opportunity.
What is Tesla offering? The Robotaxi that Elon Musk is so excited about is a self-driving car service built on the Tesla vehicle platform. It is a logical next step for Tesla's electric cars, as the company has long been working on self-driving technology. It could be a big deal, potentially eliminating the need for people to own their own cars. However, that's likely a very distant outcome.
Image source: Tesla.
Right now, Tesla is still building out its Robotaxi business. Miami, Florida, is the latest location to get access to the Robotaxi service. The only other state with Robotaxi service is Texas, where it is available in Austin, Dallas, and Houston. That's a total of four markets in two states, with one of the states being where Tesla's corporate offices are located.
Tesla isn't the only one working on self-driving cars The problem is that Tesla faces fierce competition in the autonomous vehicle market. Many companies are working on the technology. For example, technology giant Alphabet (GOOG 3.09%) has been building out its Waymo service based on its own internal technology. And it is much further along in its expansion.
Waymo offers autonomous taxi services in California in the San Francisco Bay Area and Los Angeles. In Arizona, a Waymo can be called in Phoenix. In Florida, you can hail a Waymo in Miami (the same city where Tesla just launched a RoboTaxi service) and Orlando. In Tennessee, Waymo is operating in Nashville. And in Texas, Tesla's home market, Waymo services are available in Dallas, Houston, and San Antonio. You can also get a Waymo via Uber (UBER +1.05%), which is partnering with Alphabet, in Austin, Texas, and Atlanta, Georgia.
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Doing the math on all of that, Waymo is available in some form in five states and 11 markets compared to Tesla's 2 states and five markets. Alphabet's Waymo has a much broader reach than Tesla's Robotaxi at this point.
Don't count Tesla out, but be realistic Tesla's Robotaxi is definitely a big deal, and investors should be paying close attention to the company's progress with the technology. However, it is far from the industry leader in the rollout of autonomous vehicle services. It is still early days, so Tesla could catch up and, perhaps, even take the lead. It will likely be easier to enter markets in which another service is already operating. But right now, Tesla is trailing, and investors need to keep that in mind when evaluating Elon Musk's big Robotaxi dreams.
Key Takeaways TSLA is positioned to benefit as stricter global emissions rules accelerate EV adoption.Its EV focus, scale, batteries, software and charging network strengthen its competitive edge.A lower-cost platform and global reach could expand Tesla's market and support volume growth. Tesla, Inc. (TSLA - Free Report) is well-positioned to capitalize on the global shift toward cleaner transportation as governments across major economies tighten vehicle emissions standards. Stricter carbon regulations are compelling automakers to accelerate electric vehicle (EV) production and expand model offerings. This has helped Tesla, one of the world's leading pure-play EV manufacturers, carve out a niche and pivot toward high-volume, affordable manufacturing and autonomous mobility.
Tougher Emission Rules Accelerate EV AdoptionGovernments worldwide continue to strengthen regulations aimed at lowering greenhouse gas emissions from the transportation sector. The European Union has implemented progressively stricter fleet carbon dioxide emission targets, while China continues to support new-energy vehicle adoption through a combination of regulatory mandates and industrial policies. Several other countries, including Australia and Canada, have also introduced or strengthened vehicle efficiency standards, encouraging automakers to expand their electric portfolios.
According to the International Energy Agency (IEA), global EV sales surpassed 20 million units in 2025, accounting for nearly one in every four new cars sold worldwide. The agency expects increasingly stringent emissions regulations to remain a key catalyst for EV adoption over the long term.
More EV Models Expand Addressable MarketAs automakers race to comply with tougher emissions standards, consumers are benefiting from an expanding range of EVs across multiple price points and vehicle segments. Greater model availability should further accelerate consumer adoption by improving affordability and offering buyers more choices. Although increased competition presents challenges for established players, it also broadens the overall EV market, creating a favorable backdrop for industry leaders like Tesla.
Tesla's Pure-Play EV Model Offers a Competitive EdgeUnlike traditional automakers that continue to balance investments across internal combustion engine, hybrid and EVs, Tesla operates exclusively in the battery-electric vehicle market. Its fully electric lineup eliminates the regulatory burden of reducing fleet-average emissions, allowing the company to remain ahead of tightening environmental standards.
Tesla also continues to leverage its competitive strengths, including manufacturing scale, vertically integrated operations, advanced battery technology, proprietary software capabilities and one of the industry's largest fast-charging networks. These advantages have enabled the company to maintain its leadership position even as global competition intensifies.
Moreover, Tesla remains focused on broadening its addressable market through the planned introduction of a lower-cost EV platform. A more affordable offering could significantly expand its customer base and support volume growth over the long run.
Price PerformanceTesla has soared 23.5% over the past year compared with the industry’s growth of 34.4%, outperforming peers like Toyota Motor Corporation (TM - Free Report) but lagging General Motors Company (GM - Free Report) . While Toyota has risen 3.8%, General Motors has surged 45.9% over this period.
One-Year Stock Price Performance of TSLA
Image Source: Zacks Investment Research
Promising Long-Term TailwindsWhile the pace of EV adoption may fluctuate across regions due to evolving policy incentives and macroeconomic conditions, the long-term direction remains unchanged. Governments continue to pursue decarbonization goals through stricter emissions standards, creating a favorable environment for electric vehicles.
Tesla is also well diversified geographically, with significant operations in North America, Europe and China—three of the world's largest EV markets. This global footprint enables the company to benefit from strengthening environmental regulations across multiple regions.
Investment TakeawayTesla continues to face near-term headwinds, including pricing pressure, rising competition and uneven EV demand. Nevertheless, the long-term investment thesis remains firmly supported by the ongoing global transition toward zero-emission transportation.
As emission standards become increasingly stringent and automakers introduce more electric models to comply with regulatory requirements, EV adoption is expected to continue expanding. Backed by its technology leadership, manufacturing expertise, and pure-play EV business model, Tesla appears well-poised to benefit from this secular growth trend, making the stock an attractive choice for investors seeking long-term exposure to the global electrification theme.
Tesla currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The logo of Tesla is seen on a Tesla Model Y during Tesla Inc.'s official launch in Bogota, Colombia, November 20, 2025. REUTERS/Luisa Gonzalez/File Photo Purchase Licensing Rights, opens new tab
CompaniesWASHINGTON, July 16 (Reuters) - The National Highway Traffic Safety Administration on Thursday said it was denying a 2024 petition filed by Tesla (TSLA.O), opens new tab to avoid a recall fix for nearly 20,000 vehicles with headlights that may exceed maximum lighting levels.
Tesla argued the issue was inconsequential to motor vehicle safety and did not require a recall or notification to consumers. NHTSA said it disagreed with Tesla’s conclusion that there is no increased risk of glare for surrounding traffic or the driver of the vehicle. The recall covers about 19,900 2017-2023 model year Tesla Model 3 and Tesla Model Y vehicles, NHTSA said.
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Tesla did not immediately respond to a request for comment.
The agency noted in 2022 it rejected a similar petition from GM (GM.N), opens new tab to avoid fixing 820,000 vehicles over a lighting issue.
Tesla added it is unaware of any complaints or reports of accidents or injuries related to this issue and believes it is inconsequential to safety.
NHTSA said weather conditions such as rain, snow, and fog "could result in light from the noncompliant lamps causing veiling glare to the driver or other road users driving" near those Tesla vehicles.
A survey released by the American Automobile Association in March said 6 in 10 drivers say glare is a problem after dark, and nearly three-quarters of those believe it has worsened over the past decade.
NHTSA in 2022 rejected a petition to require a recall for vehicles using LED headlights including some Tesla Model 3, Ford Bronco, and Rivian R1T motor vehicles. The petition had argued they caused excessive glare.
Reporting by David Shepardson; Editing by Chizu Nomiyama
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