Tesla stock has seen losses due to a rocky relationship between Elon Musk and President Trump. Q2 earnings report tonight amidst S&P 500 and Nasdaq highs. Auto stocks recovered, but Tesla remains down 1% year to date, with sector tariffs still in place. Focus is on core auto business and robotaxi rollout.

Tesla’s Q2 revenue expected at $22.64 billion, 9% drop from last year. Wall Street analysts predict adjusted EPS of $0.42 and adjusted net income of $1.443 billion. Musk’s political activities impact Tesla’s reputation, with concerns about competition and US consumer preferences.

Tesla delivered 384,122 vehicles in Q2, a 13.5% drop YoY. Weakness in key regions like Europe and sliding US sales pose challenges. Robotaxi testing expands in Austin, Texas. Musk plans to expand testing to San Francisco. Uber partners with Lucid and Nuro for robotaxi service next year.

Investors await updates on Tesla’s long-awaited cheaper EV and future growth plans. Analysts suggest a potential delay in revealing the cheaper model, impacting perception negatively. Concerns about weaker fundamentals and potential share sale loom. Levy believes Tesla may focus on a 3Q pre-buy to delay the low-cost model launch.

Earnings call may highlight Tesla’s robotaxi/AV narrative. Musk likely to discuss fleet growth targets or expansion plans. Tesla promised new vehicles for H1 of next year but no updates yet. Investors keen on cheaper EV development. Levy suggests a possible share sale in the future for funding AV/AI rollout.

Read more at Yahoo Finance: Tesla Q2 earnings preview: 3 things to watch