Tesla Heads Into Its July 22 Earnings Down 22%, and One Firm Sees a 67% Plunge From Here. Who's Right?
Yahoo Finance ·
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.
AI 시장 분석
Tesla delivered 480,126 vehicles in Q2, marking a 25% year-over-year growth, yet the stock remains at $391, down 22% from its 52-week high. Wells Fargo warns of a potential 67% further decline, citing concerns over profit erosion due to price cuts and rising raw material costs. Investors should closely examine whether the delivery growth translates into actual profit improvements in the upcoming earnings report.
상승 영향
- Electric Vehicles — Quarterly deliveries of 480,126 units demonstrate market share expansion and strong demand. Future cost efficiencies through economies of scale could serve as momentum for a long-term stock recovery.
하락 영향
- Electric Vehicles — Price cut competition and rising raw material costs for lithium and copper are directly undermining profitability. If margin compression persists, as analyzed by Wells Fargo, the stock risks a 67% decline from current levels.
DYAX 전담 분석
Tesla delivered 480,126 vehicles in Q2, marking a 25% year-over-year growth, yet the stock remains at $391, down 22% from its 52-week high. Wells Fargo warns of a potential 67% further decline, citing concerns over profit erosion due to price cuts and rising raw material costs. Investors should closely examine whether the delivery growth translates into actual profit improvements in the upcoming earnings report.
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