Tesla Earnings Reaction: Stock Recovers from Q2 Slump

Tesla's stock price declined 4.1% after Q2 earnings but has since recovered, retaking the $320 level after briefly falling to near $300. The stock's performance over the past week is being monitored.

Tesla's stock price experienced a significant drop following the release of its second-quarter earnings, declining by 4.1%. The stock briefly fell to near $300 but has since recovered, retaking the $320 level as of July 2, 2025. This recovery comes after initial market reaction to the financial results.

The Q2 earnings report showed that Tesla's stock price was negatively impacted by the company's near-term fundamentals, which are under pressure. Despite the mixed near-term outlook for the core auto business, the stock has shown resilience, driven by optimism surrounding Tesla's artificial intelligence and autonomy ambitions.

Wolfe Research highlighted that the investment case for Tesla is shifting increasingly toward its AI opportunities, with upcoming catalysts around Full Self-Driving (FSD) and robotaxis. The analysts noted that Tesla's Optimus humanoid robot is expected to enter scaled production in 2026, with management targeting 1 million units per year by 2030. However, near-term earnings forecasts remain below consensus estimates, with 2025 and 2026 earnings per share forecasts at $1.62 and $1.67, respectively.

The Energy segment was identified as a bright spot, with expectations for a doubling in revenues in 2026 compared to 2024, driven by strong gross margins. The analysts noted that Tesla's scale and integration expertise position it well in the global battery storage market, which continues to exceed supply.

Despite the near-term challenges, Tesla's stock price has shown signs of recovery, driven by optimism around the company's AI and autonomy ambitions. The stock's performance over the past week is being closely monitored by investors and financial professionals.

References:
[1] https://www.benzinga.com/markets/earnings/25/07/46763664/ferrari-stock-slides-on-q2-earnings-the-details
[2] https://finance.yahoo.com/m/fa54b2d7-94be-33e9-8c1d-37849bd8d804/tesla-stock-is-rising-a-new.html
[3] https://finance.yahoo.com/news/tesla-stock-wolfe-sees-improving-122306494.html