Electric vehicle (EV) maker Tesla (TSLA) is slated to release its second-quarter fiscal 2025 results after the market closes today. Interestingly, JPMorgan analyst Ryan Brinkman issued a slightly bullish note on the company’s robotaxi business, despite recently stating that the platform was “likely to disappoint.” In early July, the research firm issued a report highlighting several “stocks to short” in the second half of 2025, including Tesla.
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On July 7, Brinkman reiterated his “Sell” rating on TSLA stock, with a price target of $115, implying a massive 65.4% downside potential from current levels. The analyst has been a long-time bear on Tesla stock, maintaining a consistent sell rating for several years. Brinkman believes that Tesla’s “sky-high valuation” does not align with other stocks in the Magnificent Seven.
Why Is JPMorgan Encouraged by Tesla Now?
JPMorgan’s analysts visited Austin to ride and test Tesla’s autonomous ride-hailing service for a full day, and they returned impressed. The analysts praised Tesla’s robotaxi platform, stating that it was “certainly solid and felt like a safe ride at all times.” Such optimistic feedback is a positive sign for Tesla as it approaches its highly anticipated earnings day.
The firm’s automotive research analyst, Jose Asumendi, also stated that the future of Tesla’s robotaxi rides, and others operating in the space, will depend on traffic and accident-free data. Moreover, he believes that robotaxis could boost the pricing power of new vehicle sales.
Tesla launched its robotaxi service in Austin, on June 22. The company has seen early success and has already begun expanding its geofenced area in Austin. Tesla’s service is currently available by invitation only, and its map now spans roughly 42 square miles. Tesla’s largest competitor, Alphabet’s (GOOGL) Waymo, is also ramping up its efforts with competition in sight. Waymo has expanded its service area in Austin, which now exceeds Tesla’s.
Tesla Will Report Q2 Results Today
Wall Street expects Tesla to report adjusted earnings per share (EPS) of $0.40 on sales of $22.19 billion. Investors and analysts alike will closely watch any updates and reviews of Tesla’s robotaxi service, as several analysts have set high price targets on TSLA stock, relying heavily on the success of its robotaxi and FSD (full-self driving) businesses.
Meanwhile, analysts remain concerned about Tesla’s growing regulatory risks, as the Trump administration plans to remove the $7,500 new EV tax credit and the $4,000 used EV tax credit at the end of the third quarter.
Is Tesla Stock a Buy Before Earnings?
Ahead of the Q2 print, analysts prefer to remain on the sidelines regarding Tesla stock. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and seven Sell ratings. Also, the average Tesla price target of $299.52 implies 9.8% downside potential from current levels. Year-to-date, TSLA stock has lost 17.8%.
