Tesla's (TSLA) stock rises as analysts predict strong Q2 earnings

Tesla Inc. (TSLA) receives a price target of $355 from Cantor Fitzgerald, with Deutsche Bank maintaining a Buy rating and a $345 price target. Analysts are optimistic about Tesla’s low-cost electric vehicles. Tesla’s stock is on the rise ahead of its Q2 2025 earnings report, with an expected EPS of $0.40 on $22.42 billion in revenue.

📊 Analyst Ratings & Targets

• Cantor Fitzgerald

  • Maintains Overweight rating

  • Price Target: $355  (Note: Cantor recently trimmed its target from $425 to $355 in April)

  • Highlights: Strong confidence in Tesla’s long-term roadmap, especially in autonomous driving and Robotaxi expansion. Sees optionality in AI and software margins.

• Deutsche Bank

  • Reiterates Buy rating

  • Price Target: $345

  • Highlights: Praises Tesla’s cost discipline and execution in low-cost EVs. Points to improving fundamentals following better-than-feared Q2 deliveries.

• Consensus View

  • Overall sentiment tilting bullish with most major firms maintaining Buy or Overweight.

  • Key catalysts include upcoming Full Self-Driving updates, cost leadership in EV manufacturing, and optionality from the energy business.

🔍 Why Analysts Are Positive

• Low-Cost EV Strategy: Tesla’s push into next-gen affordable vehicles is seen as a structural growth driver.

• Robotaxi & AI Optionality: While timelines remain fluid, Tesla’s autonomous ambitions continue to support higher valuation models.

• Energy & Storage Expansion: Analysts are increasingly modeling upside from Megapack and Powerwall demand.

• Execution in Q2: Vehicle deliveries (384K) came in above reduced expectations, easing fears ahead of the report.

📉 Risks Acknowledged by Analysts

• Margins Under Pressure: Analysts remain cautious on ongoing pricing competition and Model 3/Y margin compression.

• Global Competition: Tesla faces rising pressure from Chinese automakers and shifting EV incentives.

• Macro Sensitivity: Analysts warn that high rates and economic uncertainty could impact demand in the back half of 2025.

• Revenue is expected to rebound quarter-over-quarter but remain below last year’s levels.

• EPS projected to improve sequentially, but still lower than Q2 2024.