Tesla's Q2 Revenue Expected to Drop 10% Year-Over-Year

Tesla is set to release its second-quarter financial report after market close on Wednesday. Earlier this month, the company's delivery volume fell short of expectations, raising concerns among analysts about its financial performance.

Analysts predict that Tesla's revenue and profits for the second quarter will decline year-over-year. According to estimates compiled by Visible Alpha, Tesla's second-quarter revenue is expected to be 22.9 billion, a 10% decrease compared to the same period last year. Adjusted earnings per share are projected to be 0.43 dollars, a nearly 20% decline year-over-year.

Analysts hold divergent views on Tesla's stock. The average target price indicates that most analysts expect the stock to decline. Some analysts remain bearish on Tesla, citing concerns about the company's valuation and delivery volume. For instance, one analyst has set a target price of 215 dollars, significantly lower than the stock's price of approximately 327 dollars at the end of last week. These analysts believe that the stock's performance will be more influenced by CEO comments on recent projects during the earnings call than by Tesla's actual financial results.

Other analysts, however, are more optimistic. One analyst has set the highest target price on Wall Street at 500 dollars, arguing that the decline in delivery volume is not as severe as some had feared. This analyst also points to Tesla's sales growth in China, which saw an eight-year high in June.

Some analysts have expressed concerns about the potential impact of CEO's political involvement on Tesla's business focus. They suggest that investors may be growing tired of the distractions caused by the CEO's political activities. Additionally, changes in government policies, such as the termination of electric vehicle tax credits and penalties for other automakers purchasing clean energy credits from Tesla, could affect demand for Tesla vehicles and impact its profit margins.

Among the 17 brokerages tracked by Visible Alpha, 8 rate Tesla as a "buy," 5 as a "hold," and 4 as a "sell." The average target price is slightly below 300 dollars, approximately 9% lower than the stock's price at the end of last week. Tesla's stock has declined by nearly a fifth since the beginning of the year, making it the worst-performing stock among the "seven tech giants" for 2025.