Tesla Earnings Preview: Worst Yet to Come

The article discusses Tesla's upcoming earnings release and suggests that the worst is yet to come for the company. The author, a finance expert with experience at Bloomberg, has previously covered Tesla and has a sell rating for the stock. The article highlights the challenges facing Tesla and warns that investors should be cautious.

Tesla (NASDAQ: TSLA) is set to release its second-quarter earnings on July 23, 2025, following a challenging first half of the year. The electric vehicle (EV) maker has faced significant headwinds, including production disruptions and a decline in vehicle deliveries. As Tesla's stock has fallen about 25% year-to-date, investors are closely watching the upcoming earnings report for signs of improvement or further deterioration.

In the first quarter of 2025, Tesla's vehicle deliveries dropped by 13% year-over-year and 32% sequentially, primarily due to factory upgrades and supply chain disruptions. While deliveries rebounded in the second quarter, rising 14% sequentially, they remained down 13% year-over-year, reflecting broader economic uncertainty and the impact of high-interest rates on consumer discretionary spending. Furthermore, Tesla's trailing-12-month deliveries are down 4%, indicating a sustained decline in sales volumes [1].

Tesla's valuation, with a price-to-earnings ratio of 169, reflects investor optimism about future growth, particularly in areas like autonomous ride-sharing and humanoid robots. However, the stock's high valuation and the company's recent struggles have led some experts to caution against investing in Tesla at its current price. A finance expert with experience at Bloomberg, who has previously covered Tesla and has a sell rating for the stock, warns that the worst is yet to come for the company [2].

Investors should be cautious as Tesla faces several challenges, including political controversies involving CEO Elon Musk, a pivot in strategy to autonomous vehicles and robotics, and the potential for regulatory hurdles. Additionally, Tesla's stock has been trading over 1% higher in the pre-market session following the announcement of its 2025 annual shareholder meeting on November 6, 2025, amidst growing investor backlash [3].

As Tesla prepares to report its earnings, investors should closely monitor the company's ability to execute its ambitious plans and adapt to the evolving market landscape. The upcoming earnings report will provide valuable insights into Tesla's progress and the potential for a turnaround in its fortunes.

References:
[1] https://finance.yahoo.com/news/tesla-stock-buy-ahead-earnings-101500004.html
[2] https://newsable.asianetnews.com/markets/tesla-to-hold-annual-shareholder-meeting-on-november-6-amid-growing-investor-backlash-articleshow-89tem5d
[3] https://finance.yahoo.com/news/better-ev-stock-lucid-vs-105300084.html