All eyes are on electric vehicle (EV) giant Tesla’s (TSLA) first-quarter earnings on April 22. TSLA stock has advanced about 15% in the past five trading sessions. However, shares are still down about 11% year-to-date due to concerns about weak deliveries and margin pressures amid intense competition, lack of innovation, and the impact of macro uncertainty on EV demand. Wall Street’s consensus rating indicates a cautious stance, with several analysts concerned about the EV business even as Tesla bulls remain optimistic about its full self-driving (FSD) technology, robotaxis, and other AI ventures.
Claim 55% Off TipRanks
Trade TSLA with leverageInterestingly, TSLA stock jumped 7.6% on Wednesday, after CEO Elon Musk highlighted the company’s progress on its forthcoming AI5 chip. In a post on his social media platform X, Musk said that the AI5 chip has reached a key engineering milestone and is getting closer to production.
Meanwhile, Wall Street expects Tesla to report earnings per share (EPS) of $0.36 for Q1 2026, reflecting 33% year-over-year growth. Revenue is projected to rise more than 15% to $22.26 billion from the prior-year quarter.
Barclays Is Neutral on Tesla Stock amid High Spending
Ahead of Q1 earnings, Barclays analyst Dan Levy reiterated a Hold rating on Tesla stock with a price target of $360. Levy stated that following the company’s Q4 results, he had highlighted that the end of Model S and X production marked a “symbolic baton pass” for Tesla from automotive to Physical AI, with robotaxi, FSD, and bots to be the company’s core growth focus in the years ahead. Levy added that Tesla’s Terafab plans, unveiled last month, mark the next big step in this transition. The analyst also noted the company’s plan to build 100 GW of solar capacity.
However, heading into Q1 earnings, Levy noted concerns about capital spending related to these growth opportunities. While he doesn’t expect Tesla’s capex to rise exponentially, he nevertheless sees a further increase from the elevated $20 billion figure the company revealed on its last earnings call.
Levy sees the year-to-date weakness in TSLA stock, due to little progress on robotaxi, FSD, and Optimus, as an opportunity to outperform on Q1 results. That said, he has a more “tempered” view ahead of the Q1 print, as commentary on incremental spending and, consequently, further negative free cash flow could prompt unfavorable reactions.
Other Analysts’ Views Ahead of TSLA’s Q1 Earnings
Meanwhile, TD Cowen analyst Itay Michaeli reiterated a Buy rating on Tesla stock but lowered his price target to $490 from $519. The analyst thinks that the company’s Q1 delivery miss and a “seemingly quiet quarter” for robotaxis have weighed on investor sentiment heading into the earnings. Michaeli sees a modestly positive setup for TSLA stock into the Q1 print.
Furthermore, on Tuesday, UBS analyst Joseph Spak upgraded Tesla stock to Hold from Sell with a price target of $352. Despite ongoing challenges, Spak expects Tesla to eventually make progress on robotaxis and the Optimus humanoid robot. He continues to view the company as a leader in physical AI.
However, Spak remains on the sidelines due to near-term demand challenges, an elevated investment period, and TSLA stock’s “lofty” valuation. The analyst cautioned investors about continued volatility in Tesla stock, noting that it “trades more on sentiment, narrative and momentum than fundamentals.”
Is TSLA Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on Tesla stock based on 13 Buys, 11 Holds, and six Sells. The average TSLA stock price target of $401.13 indicates shares are fully priced at current levels.
