‘Don't Ignore This Warning,' Top Analyst Trims Tesla's (TSLA) Q2 Sales Estimate by 13%
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Sheppard noted that TSLA's Q2 vehicle deliveries totaled 384,122 units, down both sequentially and year-over-year.
Nevertheless, the analyst maintained his full-year 2025 and 2026 revenue and earnings estimates. Also, he expects the company will provide an updated annual sales outlook.
Overall, he maintained a Buy rating on Tesla stock with a $355 price target, implying an upside potential of 7.99%.
Analyst Eyes Updates on TSLA's Low-Cost EV and Robotaxi
Sheppard remains bullish on Tesla's long-term prospects, pointing to its upcoming low-priced models and Robotaxi rollout. At the Q2 earnings call, the Top analyst expects TSLA to share a clearer timeline for its affordable vehicle, which was originally aimed for early 2025.
Further, at the upcoming call, Sheppard plans to ask about expected vehicle demand in the second half of 2025, the impact of tariffs, and updates on robotaxi service expansion plans.
Looking ahead, the analyst is confident about Tesla's Robotaxi plans, seeing it as a high-profit software model that can scale quickly. The firm believes Tesla could grab a large share of the self-driving and ride-hailing markets.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 13 Holds, and eight Sells assigned in the last three months. At $299.52, the average Tesla price target implies an 8.84% downside potential. The stock has declined 20.59% over the past six months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
These Analysts Want You to Buy the Dip in IBM Stock
International Business Machines (IBM) stock tumbled more than 7% on Thursday, July 24 following second-quarter earnings results that beat Wall Street expectations, prompting several analysts to view the decline as an overreaction and a compelling buying opportunity despite investor concerns about the consulting business and macro uncertainties. In Q2 2025, IBM reported revenue of $17 billion, above consensus estimates of $16.6 billion, while adjusted earnings per share stood at $2.80, above estimates of $2.64. However, software sales of $7.39 billion fell short of the $7.43 billion consensus, likely contributing to the stock's weakness despite the overall revenue beat. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Analysts Remain Bullish on IBM Stock Melius Research analysts, led by Ben Reitzes, called the stock drop too severe, given IBM's positioning in what they see as a major mainframe cycle. The analysts highlighted 'momentum' for IBM's new z17 mainframe system and noted benefits from currency tailwinds, as well as prospects for transaction processing to recover. 'We are buyers on weakness since IBM is still entering a big mainframe cycle, software is set to accelerate from here with help from Red Hat and Automation,' the Melius team said, adding they see earnings upside in the coming years. The analysts view Red Hat as 'the business that is most important to IBM's long-term multiple,' citing the hybrid cloud provider's 16% growth acceleration in the quarter, up from 12% in the first quarter. They also expressed optimism about IBM's prospects in quantum computing and the potential for the z17 mainframe to drive organic growth above the company's 5% constant-currency target. Wedbush analysts led by Dan Ives maintained an 'Outperform' rating and $325 price target, stating they 'would be buyers of any knee-jerk weakness.' The firm believes IBM is 'well-positioned to capitalize on the current demand shift for hybrid and artificial-intelligence applications with more enterprises looking to implement AI for productivity gains.' Even Bank of America, which lowered its price target from $320 to $310, reiterated its 'Buy' rating on the stock. The analysts described IBM as a 'show me story' on software performance in the second half while remaining 'bullish on overall company trajectory,' expecting estimates to move higher with increasing contribution from high-margin software. During the earnings call, CEO Arvind Krishna expressed optimism about the macroeconomic environment, highlighting strong global technology adoption. He noted that enterprises worldwide are convinced that technology forms the basis for scaling revenue while controlling capital and labor expenses. IBM demonstrated strong momentum in its hybrid cloud and AI strategy, with its GenAI book of business reaching $7.5 billion in inception-to-date sales. Management raised productivity savings targets and increased free cash flow guidance while maintaining confidence in accelerating revenue growth for the full year. IBM's consulting business, while facing near-term headwinds from delayed decision-making and discretionary project cuts, showed encouraging signs with a healthy $32 billion backlog. Krishna noted improved M&A prospects under what he called a 'rational regulation environment,' suggesting potential for strategic acquisitions. The analysts' bullish stance reflects confidence that IBM's portfolio strength, mainframe cycle momentum, and accelerating AI adoption among enterprise clients will drive sustainable growth despite current market volatility. Is IBM Stock Undervalued Right Now? Analysts tracking IBM stock forecast its free cash flow to improve from $12.75 billion in 2024 to $18.21 billion in 2029. Today, IBM stock trades at a forward FCF multiple of 16.6x, which is higher than its 10-year average of 11.6x. Given, an estimated annual FCF growth rate of 7.4% and the tech stock's dividend yield of 2.6%, the tech giant could be priced at 17x forward FCF. This would mean IBM's market cap could surpass $300 billion in the next three years, indicating upside potential of 25% from current levels. If we adjust for dividend reinvestments, cumulative returns would be closer to 35%. Out of the 21 analysts covering IBM stock, eight recommend 'Strong Buy,' one recommends 'Moderate Buy,' 10 recommend 'Hold,' and two recommend 'Strong Sell.' The average target price for IBM is $269, 2% above the current price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
13 minutes ago
- CNBC
Tesla's valuation could 'far exceed' current levels, RBC Capital Markets says
Tesla has big shoes to fill in robotics and driving software and is making significant progress in those goals, according to RBC Capital Markets. The investment firm maintained its outperform rating on the electric vehicle stock while lifting its price target by $4 to $325, which analyst Tom Narayan said incorporates Tesla's 2026 valuation and global humanoid robot penetration estimates. Narayan's new price target suggests shares are fairly valued, as the stock last closed at $325.59 per share. Shares are down more than 19% year to date. "Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin robotaxi launch has been better than many feared and the company is looking to expand in more cities," Narayan said in a Monday note to clients, adding that "regulatory hurdles remain, however ... we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters." Narayan pointed to Tesla's $300 million tariff-related impact in the second quarter, stemming from headwinds in its cars and energy business. TSLA 1Y mountain Tesla stock performance over the past year. Looking ahead, Narayan is bullish on Tesla's robotaxi expansion, although he believes the company's goal to reach half of the U.S. population by year-end is a "stretch target." Tesla recently expanded its robotaxi operating region in Austin, Texas , and is testing the service in Nevada and the San Francisco Bay Area among other locations. He's also betting big on Tesla's humanoid robots efforts. "Management maintained its goal to reach 1M units per year in less than 5 years. The prototype of its Optimus 3 will be ready by the end of this year and SOP still start next year," Narayan said in the note. "Our model only assumes this business will be used for manufacturing jobs. The reality is should these be used for home/retail purposes, the potential upside could be far greater than any other Tesla business." Narayan remains watchful of Tesla's full-self driving V.12 updates, which he said has driven a 25% increase in adoption rates. The company's supervised FSD remains to be approved in the EU and China, he said.
Yahoo
an hour ago
- Yahoo
WeRide And Uber Expand Robotaxi Reach In Abu Dhabi
Autonomous driving technology company WeRide (NASDAQ:WRD) and ride-hailing giant Uber Technologies (NYSE:UBER) announced on Tuesday that they have launched Robotaxi services on Al Reem and Al Maryah Islands in Abu Dhabi in partnership with the Integrated Transport Centre. The expanded rollout is expected to double ride volumes and now covers roughly half of Abu Dhabi's urban core, including Al Reem, Al Maryah, Yas, Saadiyat, and major highway routes to and from Zayed International Airport. Since launching in Abu Dhabi in December 2024, WeRide and Uber have tripled the size of their Robotaxi fleet. Both companies plan to scale operations further, targeting hundreds of vehicles and expanded coverage into Khalifa City, Masdar City, and more downtown districts later this and Uber operate the largest Robotaxi network in the Middle East. The fleet features WeRide's GXR model, a mass-produced autonomous vehicle designed for commercial use that seats up to five passengers. Each vehicle is expected to complete dozens of trips daily during a 12-hour shift, with average ride distances exceeding six kilometers. Al Reem and Al Maryah Islands, key finance, housing, and commerce districts, present challenging traffic and road conditions that underscore WeRide's technical capabilities in scaling autonomous systems. These deployments align with Abu Dhabi's vision to become a regional hub for smart mobility and innovation. Meanwhile, WeRide has begun fully driverless testing in Abu Dhabi, with public access expected in the coming months. In contrast to the operational strides made by WeRide and Uber, Tesla (NASDAQ:TSLA) continues to face investor skepticism regarding its autonomous driving ambitions. Despite CEO Elon Musk's ambitious pronouncements, the company's financial results have been underwhelming, and its Robotaxi timelines have experienced notable delays. Following a weak earnings report, Musk reiterated a focus on driverless electric vehicles and Robotaxis, yet Tesla's stock experienced a 5.5% decline over five days. Analyst sentiment remains cautious; while Canaccord Genuity lauded the long-term Robotaxi vision, it underscored the immediate imperative for near-term growth. Goldman Sachs, meanwhile, characterized Tesla's Robotaxi initiative as 'still small' with limited technical transparency. This backdrop highlights Tesla's continued struggle to gain a competitive edge in autonomous mobility against established players such as Alphabet's (NASDAQ:GOOGL) Waymo and Baidu's (NASDAQ:BIDU) offerings. From a market performance perspective, WeRide's stock is down 18% year-to-date. However, it has seen a significant recovery, gaining over 53% in the last three months. This volatility can be partially attributed to broader global economic uncertainties and the evolving landscape of U.S. trade and electric vehicle policies under the current administration. Price Actions: WRD shares are trading higher by 1.71% to $10.43 premarket at last check Tuesday. UBER is down 0.55%. Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? WERIDE (WRD): Free Stock Analysis Report This article WeRide And Uber Expand Robotaxi Reach In Abu Dhabi originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
