Tesla's Band-Aid Has Been Ripped Off: Rally Mode Engaged
[content-module:CompanyOverview|NASDAQ:TSLA]
But this is Tesla, and its post-earnings reaction suggests the tide may be turning in a big way.
The key takeaway? The band-aid has been ripped off, and much of the uncertainty has been removed.
After months of heavy selling and darkening forecasts, investors appear to be finally ready to look past the doom and gloom and buy back into the long-term story.
The technicals support this view, with the higher RSI and MACD maintaining bullish momentum. If this holds, Tesla could be in the early stages of a much larger recovery.
Earnings Miss, But Focus Shifts to What's Ahead
Tesla reported Q1 revenue of $19.34 billion, down 9.2% year over year and well below expectations. Non-GAAP EPS came in at $0.27, a clear miss by $0.15. Much of the shortfall came from a combination of production line upgrades and ongoing pressure in the EV pricing environment.
Despite the headline numbers, the company's commentary painted a picture of transition rather than deterioration. Tesla highlighted the successful simultaneous retooling of all four of its vehicle factories, a move the company called an automotive industry first, as it ramped up for updated Model Y production.
Management also reinforced its commitment to AI and energy storage, calling both pillars of future growth. They noted that AI infrastructure is driving rapid demand for energy storage, a segment that saw a solid increase in revenue. While automotive sales did drop, the energy division is increasingly being seen as proof that Tesla can scale new business lines quickly and at meaningful volume.
AI, Energy, and a Shift in Focus
Tesla's outlook clearly hinges on its ability to diversify. The company stated outright that AI is central to both its business model and the broader economy, and it pointed to the rapidly growing demand for infrastructure as a major catalyst for energy product sales.
While the ongoing tariff environment and macro headwinds are expected to weigh more heavily on the energy division than the automotive side, Tesla said it's already taking steps to stabilize margins and ensure long-term profitability. It also reiterated its intent to roll out autonomous robots for multiple use cases, another sign that it sees real opportunity beyond cars.
Meanwhile, another key shift that is helping fuel the rally: Elon Musk confirmed he will soon step back from his work with the Department of Government Efficiency and refocus on Tesla. Investors have long worried that Musk's outside commitments were distracting from the company's day-to-day execution. This change, subtle as it may be, seems to have offered the market a much-needed psychological reset.
The Technicals Back the Move
Tesla's chart now reflects a change in sentiment. The stock is putting together a string of higher closes, and more importantly, it's done so on rising volume. The relative strength index (RSI) has climbed steadily from deeply oversold levels and now sits comfortably in bullish territory. The MACD remains in a positive crossover and is trending upward—two important signs that momentum has shifted.
This kind of price action is often what marks the beginning of sustained rallies, especially in high-beta stocks like Tesla. With many traders caught flat-footed by the move off the lows, further strength could force a wave of short covering and FOMO-driven buying.
[content-module:TradingView|NASDAQ:TSLA]
Some Risks Remain
To be sure, the risks haven't vanished. Tesla is still navigating fierce pricing pressure from Chinese competitors, soft demand in the U.S., and an uncertain macro landscape. But those risks are no longer new, and the stock's reaction suggests they may already be priced in.
Tesla's ability to rebound on disappointing numbers reflects just how washed out sentiment had become. Now that expectations are reset and the narrative is shifting back toward innovation and execution, the upside looks far more tangible than it did just a few weeks ago.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Zacks Investment Ideas feature highlights: AMD, Nvidia, Oracle, Tesla and Broadcom
For Immediate Release Chicago, IL – August 5, 2025 – Today, Zacks Investment Ideas feature highlights AMD AMD, Nvidia NVDA, Oracle ORCL, Tesla TSLA and Broadcom AVGO. Buy AMD Stock for New Peaks as Q2 Earnings Approach? AMD will be a highlight of this week's earnings lineup, with the chip leader set to release its Q2 report after-market hours on Tuesday, August 5. Like Nvidia, which is scheduled to report later in the month, AMD stock has been performing well due to a combination of strategic product launches, strong AI demand, and favorable market conditions. Recently hitting a 52-week high of $182 a share, let's see if fresh peaks are in store for AMD stock as its Q2 earnings approach. AI Momentum & Data Center Growth Gaining traction from major companies like Oracle, Tesla and OpenAI, AMD's MI355X Graphic Processing Unit (GPU) is reported to deliver over 7X the compute power of its previous high-powered AI chip, the MI325X, and has become a serious contender to Nvidia's offerings. Thanks to strong demand for AI accelerators, AMD has raised the price of its MI350 series chips to over $20,000. This is a great sign ahead of AMD's Q2 report, as the company's Central Processing Units (CPUs) and GPUs led to a 57% surge in its data center revenue in Q1. Also fueling investor sentiment is that recent U.S. policy shifts have loosened export restrictions, allowing AMD to resume its chip shipments to China and potentially adding hundreds of millions in revenue. Rebounding and surging over +70% in the last three months, AMD stock is now up +45% year to date to impressively top the S&P 500 and Nasdaq's returns of +6% and +8% respectively, while even topping Nvidia's +32%. AMD's Q2 Expectations With analysts expecting another strong quarter of data center growth, AMD's Q2 sales are expected to be up 27% to $7.41 billion compared to $5.84 billion a year ago. However, AMD is also facing the impact of competitive pricing in the CPU and GPU market, with Q2 earnings thought to have dipped to $0.47 a share compared to EPS of $0.69 in the prior period. Attributing to margin pressures, higher R&D spending on its next-generation GPUs is thought to have weighed on AMD's bottom line during Q2 as well. That said, AMD has reached or exceeded the Zacks EPS Consensus for 25 consecutive quarters, dating back to April of 2019, and has posted an average EPS surprise of 2.3% over its last four quarterly reports. Plus, AMD is still projected to post double-digit top and bottom line growth in fiscal 2025 and FY26, but Wall Street is very much anticipating the company's Q3 guidance to see if the chipmaker can sustain its growth trajectory. Monitoring AMD's Valuation Like most of the leading chipmakers, AMD stock trades at a premium to the broader market at 44X forward earnings. While this is above the benchmark S&P 500's 23.3X, AMD is roughly on par with Broadcom's forward P/E valuation and is near Nvidia's 40.7X. It's also noteworthy that AMD trades far more reasonably than some of its AI chip-producing peers in terms of price-to-sales. In this regard, AMD has a forward P/S ratio of 8.7X, with Nvidia and Broadcom stock trading over 20X forward sales. Bottom Line For now, AMD stock lands a Zacks Rank #3 (Hold). To that point, it wouldn't be surprising if AMD stock hit new peaks, although better buying opportunities could be ahead after such a monstrous rally over the last three months. Keeping this in mind, AMD's Q2 report and guidance will be critical to more upside. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report
The Market Online
an hour ago
- The Market Online
BUY NOW? Puma, D-Wave, and Almonty Industries with 100% upside potential
Sometimes the stock market is not rational. That is precisely when great opportunities can arise. Almonty (TSX:AII) shares appear to be one such opportunity right now. The tungsten gem has corrected sharply following its NASDAQ listing. While the Company remains in its quiet period, analysts are speaking out and see significant upside potential. The rally could resume soon, as tungsten remains critical for defense and other industries. Staying the course despite sharp corrections has paid off for D-Wave this year. Those who bought additional shares were rewarded. Next week, the quantum stock is likely to see new momentum. No positive momentum is currently expected for Puma. Following the profit warning, the stock is at rock bottom, and analysts are slashing their price targets. Or is this the signal to buy? This article is disseminated in partnership with Apaton Finance GmbH. It is intended to inform investors and should not be taken as a recommendation or financial advice. Almonty: Analysts recommend buying Almonty Industries (TSX:AII) shareholders had certainly imagined a different scenario for the Company's NASDAQ debut. After listing at USD 4.50, the tungsten gem's stock is currently trading at around USD 3.60. The only reason for the sharp correction can be a classic case of 'sell on good news'. After all, the stock, already listed in Canada and Germany, was trading at USD 1.50 at the beginning of the year. Fundamentally, nothing has changed in the past two weeks—quite the contrary. The entry of the US government and Apple into MP Materials highlights just how significant the interest is in critical raw materials from secure countries. In an interview following the NASDAQ IPO, Almonty CEO Lewis Black emphasized that tungsten is actually rarer than rare earths. The importance of this extremely hard material for defense, aerospace, and technology is existential. Research studies published in recent days also show that Almonty is fundamentally poised for a bright future. Analysts at Alliance Global Partners expect Almonty to generate USD 142 million in revenue from tungsten mining and sales as early as next year, with earnings per share of USD 0.22. And that is before the mega mine in South Korea ramps up in 2026. Revenue and earnings are expected to rise sharply in the coming years. Analysts at Augsburg-based GBC Research project revenues of CAD 314 million and earnings per share of CAD 0.74 by 2027. In an interview with Lyndsay Malchuk from Stockhousemedia, GBC analyst Matthias Greiffenberger commented on the apparent undervaluation of Almonty compared to MP Materials to interview. Overall, this correction appears to offer patient investors a significant opportunity to enter or increase their position. D-Wave has impressively demonstrated this year how quickly a stock can recover from a sharp correction without fundamental reasons. In January, the quantum high-flyer's stock lost almost two-thirds of its value, only to nearly triple by March. From mid-March to mid-April, it then halved again to EUR 5.40. The D-Wave share is currently back above EUR 16, close to its all-time high. On August 7, 2025, D-Wave will report on its second-quarter performance. Experts at expect sales of the new Advantage2 system to be reflected in the reporting period. Advantage2 is D-Wave's latest flagship product with technical improvements such as longer coherence time, faster annealing, and better error correction, enabling it to solve more complex optimization, AI, and materials research problems. According to the analysts at Zacks, another highlight in the quarterly report should be an increase in new customers. Puma: Rebound after the crash? Like Almonty, Puma's share price has also corrected sharply in recent days. However, there can be no talk of 'Sell on good news' for the sporting goods group. There are fundamental reasons for this. The Company shocked investors with a massive profit warning. Instead of the previously expected operating profit (EBIT) of between EUR 445 million and EUR 525 million, an operating loss will now likely have to be posted. The development in the second quarter shows where the journey is headed: Puma's revenue fell by around 8% to EUR 1.94 billion. This resulted in a net loss of over EUR 200 million. The fact that inventories rose by over 18% to EUR 2.15 billion is worrying for the coming quarters. If the goods are not sold, discount campaigns and write-downs are likely. The new CEO, Arthur Hoeld, has announced a change in strategy. This will be presented in October and is therefore unlikely to have any effect until next year at the earliest. Analysts currently see little opportunity for Puma. The price targets have been slashed. Deutsche Bank reduced the fair value of Puma shares from EUR 34 to EUR 20. Analysts have withdrawn their 'Buy' recommendation and now rate the stock as 'Hold.' UBS had already rated Puma as 'Sell' before the profit warning. Following the announcement, analysts have reduced their target price again from EUR 19.10 to EUR 16.30. Puma shares are currently trading at EUR 20.30. Buying or adding to Almonty shares should pay off soon. The fundamentals are strong, and the valuation discount to MP Materials is huge. This insight should also prevail on the NASDAQ. D-Wave is the core investment in the quantum sector. The stock is very volatile, but the trend is clearly upward. Puma does not currently present an obvious buying opportunity. A rebound is not in sight, as the operational problems appear to be too serious. Conflict of interest Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a 'Transaction'). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company. In this respect, there is a concrete conflict of interest in the reporting on the companies. In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is also a concrete conflict of interest. The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such. The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user. The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
Globe and Mail
an hour ago
- Globe and Mail
Prediction: 1 Artificial Intelligence (AI) Stock Will Be Worth More Than Palantir Technologies and Nvidia Combined by 2030
Key Points Nvidia and Palantir are collectively worth $4.6 trillion today, and Meta Platforms has a reasonably good shot at surpassing that figure within five years. Meta Platforms is using artificial intelligence to strengthen its ad tech business, and the company is an early leader in the smart glasses market. Wall Street expects Meta's earnings to grow at 17% annually in the next three to five years, but analysts have regularly underestimated the company. 10 stocks we like better than Meta Platforms › Shares of Nvidia have advanced 29% year to date, leaving the chipmaker with a market value of $4.2 trillion. And shares of Palantir Technologies have surged 104% year to date, bringing its market value to $365 billion. That means the companies are collectively worth $4.6 trillion. I think Meta Platforms (NASDAQ: META) can surpass that figure in five years. The company is currently worth $1.9 trillion, so its market value needs to increase 150% to $4.7 trillion by 2030 to satisfy my prediction. In that scenario, the stock would return about 20% annually. My forecast is aggressive, but investors have good reason to think Meta is equal to the challenge. Here's why. Meta Platforms is using artificial intelligence to strengthen its ad tech business Meta Platforms owns three of the four most popular social media platforms in Facebook, Instagram, and WhatsApp as measured by monthly active users. Those three platforms also ranked among the four most downloaded social applications for mobile devices last year, meaning the company is successfully defending its dominant position in the industry. Meta currently earns the vast majority of its revenue from advertising. Its ad tech tools help brands reach consumers with relevant ads across its social media platforms, as well as third-party websites and mobile applications. What advertisers are willing to pay depends on user engagement and campaign performance, and the company is leaning on artificial intelligence (AI) to improve both metrics. CEO Mark Zuckerberg recently told analysts, "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Improved recommendations led to a 5% increase in time spent on Facebook and a 6% increase in time spent on Instagram in the second quarter. Also, more brands used Meta's AI creative tools, leading to 3% more ad conversions on Facebook and 5% more on Instagram. Here's the bottom line: Meta Platforms is the second largest ad tech company, behind only Alphabet 's Google, and it is successfully using AI to strengthen its value proposition for consumers and brands. Ad tech spending is forecast to increase at 14% annually through 2030, according to Grand View Research. That gives Meta a good shot at similar earnings growth within its advertising segment. Meta Platforms dominates the burgeoning smart glasses market Meta Platforms is currently the leading supplier of smart glasses. The company accounted for over 60% of shipments last year as the market tripled in size. And growth is projected to remain robust in the years ahead. Counterpoint Research says smart glasses shipments will grow faster than 60% annually through 2029. Other analysts are a little less optimistic. Grand View Research estimates smart glasses sales will increase at 27% annually through 2030. Nevertheless, CEO Mark Zuckerberg thinks smart glasses could slowly replace smartphones (or at least reduce their importance) in the next 15 years, especially once lenses are embedded with augmented reality displays. That could make Meta Platforms the Apple of the 2030s. To elaborate, whereas Apple was a sensational investment over the past two decades in large part because of the success of the iPhone, Meta could see similar success in the next two decades if smart glasses do indeed become the form factor of choice in personal computing and mobile communications. Why Meta Platforms could be worth $4.7 trillion by 2030 To summarize, Meta Platforms is using artificial intelligence to strengthen its advertising business, and the company is also an early leader in the smart glasses market. In turn, Wall Street analysts expect its earnings to grow at 17% annually over the next three to five years. That makes the current valuation of 27 times earnings look reasonable. However, Meta Platforms beat the consensus earnings estimate by an average of 18% in the last four quarters, meaning Wall Street has routinely underestimated the company. If that trend continues, earnings could grow at 21% annually over the next five years, in which case its market value could hit $4.7 trillion (more than Nvidia and Palantir combined today) while its valuation fell to 26 times earnings. Importantly, while I am moderately confident in the scenario I've outlined, Meta Platforms is still a smart long-term investment even if its market value does not reach $4.7 trillion in five years. Patient investors should consider buying a small position today. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
