Tesla (NASDAQ:TSLA) stock has proven resilient, even as the company faces a sharp drop in sales and a deteriorating brand image – factors that would typically spell trouble for most firms. But Tesla is clearly not your average company.
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How else to explain TSLA’s performance over the past few months? Despite mounting challenges, the stock has jumped 44% since its late April earnings call.
Much of that momentum can be traced back to Musk’s announcement during the call that he would be refocusing his attention on Tesla – a move that seemed to reassure investors. Now, with Q2 2025 results set to drop on Wednesday, July 23, the big question is whether Tesla can repeat that trick and defy the skeptics once again.
Not everyone is convinced. One top investor, known by the pseudonym Deep Value Investing, is bracing for a disappointing earnings report – one that even Musk’s trademark showmanship might not be able to salvage.
“I expect a weak Q2 from Tesla, which could lead to a selloff post-earnings if CEO Elon Musk fails to reignite shareholder excitement,” warns the 5-star investor, who’s ranked among the top 3% of stock pickers on TipRanks.
Deep Value flags a gloomy outlook from Wall Street, with analysts forecasting a double-digit drop in both revenue and EPS. While Tesla’s 384,000 EV deliveries in Q2 mark a rebound from the dismal Q1, they still represent a 22% decline from Q4 2024 and a 13.5% year-over-year decrease.
Adding to the uncertainty is Musk’s ongoing public feud with former President Trump over the “One Beautiful Bill” – a spat that Deep Value believes is further clouding the company’s narrative.
There’s always a chance Musk could shift sentiment with an unexpected update on key initiatives – whether it’s the Model Y, Tesla’s robotaxi efforts, or Grok AI integration. But without a meaningful turnaround in EV sales, Deep Value isn’t betting on it. Instead, the investor is taking a wait-and-see approach.
Tesla Stock Isn’t a Buy
“I prefer to stay on the sidelines and observe price action around earnings,” Deep Value concludes, assigning TSLA a Hold (i.e., Neutral) rating. (To watch Deep Value Investing’s track record, click here)
Wall Street seems just as conflicted. With 13 Buys, 13 Holds, and 8 Sells, Tesla’s consensus rating also sits at Hold. The average price target of $298.93 suggests nearly 10% downside from current levels. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.