Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk has a history of making bold proclamations, and he did so once more on the company’s Q2 2025 earnings call last evening.
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“I think Tesla has a shot at being the most valuable company in the world,” stated the world’s richest man. Of course, Musk added, this is contingent upon Tesla executing with its vehicle autonomy and humanoid robot visions going forward.
While futuristic ambitions have propelled TSLA shares upwards in the past, the news from the last quarter was less upbeat. Tesla’s Q2 EV deliveries sunk 13.5% year-over-year, and more pain could transpire as the company loses the benefits of U.S. tax incentives for American EV buyers. Acknowledging this point, Musk himself noted that Tesla could be in store for a few “rough quarters” before full-self driving begins to scale.
Thus far, the market’s overall response to the Q2 2025 earnings report hasn’t been super enthusiastic, and TSLA’s share price has fallen in the mid-single digits prior to today’s opening bell.
Weighing in, top investor Jonathan Weber asserted that he is “not interested at all” in owning TSLA shares.
“Tesla, Inc. reported quarterly results that showed deep declines, highlighting ongoing margin pressures and cash flow issues,” explained the 5-star investor, who is among the top 2% of TipRanks’ stock pros.
While Tesla was able to beat revenue estimates, this is only because these have been revised downward of late, points out the investor. Moreover, Weber also notes that while the market had already absorbed the year-over-year decline in EV deliveries, automotive revenues fell by an even greater amount (16%) – signifying a decline in average selling prices.
“This isn’t too surprising, as competition remains fierce and has arguably gotten even worse in recent quarters, especially in China, the world’s largest EV market,” Weber states.
The combination of falling revenues and decreasing margins pushed operating income down by 40% to $923 million, the investor adds, a pretty low number for a company with a market cap north of $1 trillion.
“Can Tesla turn things around? It may do so. Do I want to speculate on that at a time when TSLA stock is extremely expensive? No,” concludes Weber, who is rating TSLA a Sell. (To watch Weber’s track record, click here)
Wall Street, on the other hand, is not planning on throwing in the towel anytime soon. With 14 Buy, 12 Hold, and 7 Sell ratings, TSLA has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $305.79 has a downside of ~8%. (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.