Tesla (TSLA) stock is in focus ahead of its second-quarter report, set for Wednesday, July 23. While Wall Street views are mixed, TipRanks’ A.I. analyst stays positive on TSLA stock with an Outperform rating. Additionally, the A.I. tool sets a price target of $351, suggesting over 6% upside. This contrasts with Wall Street’s consensus, which projects a 9.3% downside. Notably, TSLA stock gained 1.35% in pre-market trading on Monday, starting its earnings week on a positive note.
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For context, TipRanks’ A.I. Stock Analysis uses data-driven models to evaluate stocks across key factors, giving users a quick and clear picture of a stock’s potential.
AI Analyst Ranks Tesla High for Its Autonomous Ambitions
The A.I. analyst gives TSLA a score of 72 out of 100, reflecting the company’s strength in autonomous driving technology. This outlook is driven by Tesla’s continued focus on AI, software, and robotics, which could help offset recent margin pressures and delivery challenges. Investors will be watching closely for updates on profit trends, production forecasts, and progress on Full Self-Driving in the upcoming earnings.
Among the positive factors, the A.I. analyst also highlighted that Tesla’s Q2 deliveries were historically weak, but they still came in slightly above some analyst expectations. This marks a positive sign for the company. For context, Tesla delivered 384,122 vehicles in Q2, down 13.5% from a year ago. However, the figure was close to Wall Street’s estimate of approximately 386,000 units.
On the flip side, Tesla faces some key risks that could hurt its stock. For instance, Elon Musk‘s focus on politics could be a potential near-term headwind for TSLA shares. Moreover, the drop in regulatory credit revenue is likely to hurt Tesla’s profits and may force analysts to revise their financial forecasts.
Analysts Remain Cautious on TSLA Stock
Ahead of the Q2 earnings reveal, Wall Street remains split on TSLA stock.
Recently, analysts Dan Levy at Barclays and Mark Delaney from Goldman Sachs maintained their Hold ratings on TSLA stock ahead of its Q2 earnings. They point to concerns about Tesla’s core performance, shrinking margins, and a softer delivery outlook.
On the bullish side, Morgan Stanley’s Adam Jones reiterated his Buy rating on TSLA stock, projecting over 24% upside from current levels. Jones supports his bullish stance by pointing to Tesla’s strong strategic position in both the automotive and tech sectors. He highlights the company’s potential to benefit from the rising integration of AI and robotics in vehicles.
What Is the Target Price for TSLA Stock?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 13 Holds, and eight Sells assigned in the last three months. The average Tesla stock price target is $298.93, suggesting a potential downside of 9.3% from the current level.
