Tesla stock near buy point ahead of earnings, robotaxis in focus; BYD leads in EV sales.

Tesla stock is near a buy point ahead of earnings, with a focus on robotaxis. While BYD is the clear leader in EV sales, Tesla's stock performance is the focus. Investors are looking forward to the company's earnings call to see how Tesla's robotaxis will impact its business.

Tesla (TSLA) is scheduled to report its second-quarter earnings after the market closes on Wednesday, July 23, 2025. Despite recent challenges, the stock is nearing a buy point as analysts focus on the potential impact of the company's robotaxi services. While BYD is currently the leader in EV sales, Tesla's stock performance remains a key focus for investors [1].

The EV maker is expected to report a 10% decline in revenue from the same time last year to $22.9 billion, with adjusted earnings per share projected to fall nearly 20% year-over-year to $0.43 [1]. Analysts are divided on Tesla's stock, with an average price target suggesting most expect shares to decline. UBS analysts, for instance, have called Tesla stock "fundamentally overvalued," holding a $215 price target, well below the current level of about $327 [1]. However, Wedbush analysts, with their Street-high $500 price target, are more bullish, noting that Tesla returned to sales growth in China for the first time in eight months in June [1].

The earnings call will provide insights into Tesla's delayed, more affordable vehicle and the recent launch of its robotaxi service. Musk's comments on these initiatives are expected to significantly influence the stock's movement, according to UBS analysts [1]. The company's robotaxi service, which includes Full Self-Driving (FSD) capability, was launched in Austin in June and is set to expand to the San Francisco Bay Area in the coming months, subject to regulatory approvals [2].

Investors are also watching Tesla's expansion into the Indian market, with the first showroom opening in Mumbai on July 15, 2025. The company's entry into the Indian market marks a significant step in its global expansion strategy [1]. Despite the challenges, Musk maintains that Tesla's future rests on robots, artificial intelligence, and self-driving taxis [1].

Analysts expect Tesla's earnings to fall by 25.9% in 2025 before rising by 54% in 2026. Tesla remains a "Hold" on Wall Street, with 12 analysts recommending it as a "Strong Buy," two as a "Moderate Buy," 16 as a "Hold," and 10 as a "Strong Sell" [2]. The stock's forward price-earnings ratio of around 231x far exceeds other high-growth tech companies such as Alphabet (GOOGL) (19x) and Nvidia (NVDA) (41x) [2].

In conclusion, Tesla's stock is near a buy point ahead of earnings, with a focus on the potential impact of its robotaxi services. Investors are eagerly awaiting the earnings call to gauge the company's progress and future prospects.

References:
[1] https://finance.yahoo.com/news/analysts-think-tesla-stock-ahead-162532103.html
[2] https://finance.yahoo.com/news/too-much-hype-too-few-154121010.html