The market’s reaction to the Q2 2025 Tesla, Inc. (NASDAQ:TSLA) earnings report was swift – and painful. While the news of declining year-over-year EV deliveries for Q2 had already been absorbed, it was a bit jarring to hear the always optimistic CEO Elon Musk acknowledge that the company could be in for some “rough quarters” due to the removal of EV tax credits.
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TSLA’s share price sank some 8% in the day following the earnings call, no doubt reflecting the slowing EV business numbers. Still, the effervescent CEO had plenty of forward-looking statements that bulls could latch onto, including regarding robotaxis, Optimus robots, and the company’s AI developments.
There is a clear divide between how bulls and bears view TSLA and its valuation, which is far greater than that of a standard automobile manufacturing company. So, which is it – the bull case that focuses on technological developments, or the bearish view that is concerned about declining EV sales?
Investor Marc Gerstein believes that there is merit to both sides of the coin.
“Bears who focus on bad present-day business trends make strong arguments. Ditto bulls who focus on the futuristic things TSLA is doing,” explains the 5-star investor. “Tesla bears and bulls are equally right, so I’m splitting the difference.”
Gerstein is none too happy with Musk’s political dalliances, and the investor wishes that the CEO would spend more time on his business ventures. In fact, the investor explains that he is more than ready to bid TSLA adieu thanks to Musk’s DOGE work, vocal opposition to President Trump’s recent legislation, as well as his willingness to criticize European leaders, among other extracurricular activities.
The problem is, Gerstein still feels that Tesla remains a fascinating company – one he just can’t bring himself to quit, noting that “TSLA is way too darn interesting for me to abandon.”
The investor is clearly excited by Musk’s designs on solving automation when it comes to both robots and robotaxis. While Gerstein acknowledges that while some of these ventures might not stick the landing – such as a virtual robotaxi fleet – the payoff could be astounding if they do.
Gerstein is fully torn between these two competing camps, and is therefore not ready to choose one way or another.
“Given how firmly entrenched the bear and bull cases are as well as the Musk risk, I now think I’m likely to stay in the middle for a long time,” concludes Gerstein, who is giving TSLA a Hold (i.e. Neutral) rating. (To watch Gerstein’s track record, click here)
Wall Street is pretty split when it comes to TSLA as well. With 14 Buy, 15 Hold, and 7 Sell ratings, TSLA has a consensus Hold rating. Its 12-month average price target of $313.67 implies minimal movement in the year ahead. (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.