Tesla Inc (NASDAQ:TSLA) just delivered one of its toughest earnings in years. Second quarter revenue dropped 12% to $22.5 billion, and net income plunged 16%, while vehicle deliveries fell 13.5% year-over-year.
Tesla's shares slumped 6%–9% in after-hours and pre-market trading after CEO Elon Musk cautioned the company could face "a few rough quarters" as the $7,500 federal EV tax credit ends and tariffs bite. Tesla stock plummeted over 9% in early trading on Thursday.
Track Tesla stock’s volatile price movements here.
Musk described it as part of a "weird transition period" before autonomy and robotaxi revenue begin to offset losses.
The Dip Tempts Value Hunters
Despite the headwinds, some bulls see opportunity. Tesla's long-term AI and autonomy ambitions — fueled by Dojo, Optimus, and now Robotaxi — remain intact. And with the stock still up ~60% from April's lows, the recent weakness could simply be a reset before another leg higher, particularly if Robotaxi Day includes even modest surprises.
Wedbush's Dan Ives remains confident in the long-term thesis, calling the dip a "pushback, not a pivot." Ives, while cautious, called the stock "rangebound" for now but reaffirmed the long-term AI thesis. Meanwhile, options traders are already betting on a major post-earnings move — implying over 10% swing potential in either direction.
What's Priced In and What Else Might Matter
Tesla's valuation at ~60× forward earnings now reflects a significant premium and risk. Musk's guidance shift, combined with macro pressures — tariffs, incentive loss and policy uncertainty — have clearly rattled investors . Yet, if Tesla can deliver modest margin resilience or bring Robotaxi news sooner than expected, this dip might prove premature.
Tesla's stock may feel like a rollercoaster, but it's no accident. Musk's caution reminds investors that short-term softness is a reality, not just headline noise. For bulls betting on autonomy and autonomy-led economics by late 2026, this dip might be a strategic entry. But only if patience and execution hold up.
Tesla remains a high-volatility, high-conviction trade — embrace only if you believe in the long game.
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