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Austin, Texas-based Tesla, Inc. (TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the U.S., China, and internationally. With a market cap of over $1 trillion, the company operates through the Automotive; and Energy Generation and Storage segments. The EV giant is expected to announce its second-quarter results on Tuesday, Jul. 22.
Ahead of the event, analysts expect Tesla to report an EPS of $0.30, down 28.6% from $0.42 reported in the year-ago quarter. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the projections on two other occasions.
For the full fiscal 2025, Tesla is expected to report an EPS of $1.39, down a massive 31.9% from $2.04 reported in 2024. While in fiscal 2026, its earnings are expected to rebound 72.7% year-over-year to $2.40 per share.
TSLA stock has plunged 21.3% on a YTD basis, significantly underperforming the S&P 500 Index’s ($SPX) 5.5% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3.1% dip during the same time frame.
Despite delivering lackluster results, Tesla’s stock prices gained 5.4% in the trading session after the release of its Q1 results on Apr. 22. Due to CEO Elon Musk’s role at DOGE in the US government, the company faced severe backlash from consumers in the US and Europe. This led to a 19.6% year-over-year decline in Tesla’s automotive revenues to $14 billion. However, its energy storage and generation, and services revenues observed notable gains, partly offsetting losses in EV sales. Its overall sales for the quarter dropped 9.2% year-over-year to $19.3 billion. Meanwhile, its net income to shareholders plunged 70.6% from the year-ago quarter to $409 million.
However, investors grew bullish on the stock after Musk gave out updated production timelines for driverless robotaxi cabs.
Analysts remain cautious about the stock’s prospects. TSLA maintains a consensus “Hold” rating overall. Of the 41 analysts covering the TSLA stock, opinions include 14 “Strong Buys,” two “Moderate Buys,” 15 “Holds,” and 10 “Strong Sells.” As of writing, the stock is trading above its mean price target of $297.31.
