Tesla Earnings Ahead: Can Robotaxi Hype Offset Q2 Auto Woes?

Tesla, Inc. (TSLA) shares edged up in Wednesday’s early premarket session ahead of the electric vehicle (EV) maker’s earnings report due after the market close.

Stung by a demand slowdown amid macroeconomic uncertainties, and CEO Elon Musk’s political overtures and concerns over his divided attention to his flagship business, Tesla stock is down nearly 18% for the year. This contrasts with the S&P 500’s 8% advance over the same period.

The stock, which is part of the Magnificent Seven group of mega-cap companies, is the worst-performing among them. The Roundhill Magnificent Seven ETF (MAGS), an exchange-traded fund (ETF) that tracks the performance of these seven stocks, has gained 5.46% year-to-date.

According to Fiscal.ai-compiled consensus, Tesla is expected to report adjusted earnings per share (EPS) of $0.41 and revenue of $22.13 billion for the second quarter of the fiscal year 2025 versus the year-ago quarter’s $0.40 and $25.5 billion, respectively. However, the metrics are expected to improve from the first quarter’s $0.27 and $19.34 billion, respectively.

Earlier this month, Tesla reported vehicle deliveries of 384,122 units for the second quarter, down sharply from the year-ago’s 443,956 units but up from 336,681 units reported for the previous quarter.

Investors are likely to look past the second-quarter numbers and focus on Tesla’s update on the robotaxi rollout. 

Questions compiled by the shareholder services platform provider Say, on behalf of Tesla investors, showed that those representing 2.9 million Tesla shares wanted information on “how robotaxis have been performing so far and what rate they are expected to expand in terms of vehicles, geofence, cities, and supervisors.”

Tesla launched the service in Texas last month to mixed reviews.

In a note released on Tuesday, Roth Capital stated that the positives at Robotaxi and Optimus are likely to outweigh the weakness in second-quarter EV sales, as reported by The Fly. The firm has assigned a ‘Buy’ rating and a $395 price target to Tesla stock.

BofA Securities raised Tesla's stock price target to $314 from $305 this week but maintained a ‘Neutral’ rating. The firm sees a challenging second quarter due to Trump tariffs and the disappointing second-quarter deliveries. 

The focus is also likely to be on the impact of the Trump administration’s decision to eliminate the federal tax credit for EVs. 

On Stocktwits, sentiment toward Tesla stock was at ‘neutral’ (53/100) early Wednesday, with the message volume staying at ‘normal’ levels.

A bearish watcher called upon fellow retail traders to short the stock, fearing a “bad” earnings report.

However, a bullish user suggested that Tesla stock could move in tandem with its overseas auto peers, reacting to the Japan trade deal, and potentially rise ahead of earnings. 

The Koyfin-compiled consensus price target for Tesla stock is $305.05, implying roughly 8% downside from current levels.

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