Charged: Tesla targets June 22 for first public robotaxi rides

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From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

ROBOTAXI RIDES: In a post on X, Tesla CEO Musk responded to a question about when the first public robotaxi rides will start, stating: “Tentatively, June 22. We are being super paranoid about safety, so the date could shift. First Tesla that drives itself from factory end of line all the way to a customer house is June 28.”

UPGRADES, PRICE RAISES: Tesla upgraded its Model S and Model X cars in the U.S. and raised the prices of all configurations of the two models by $5,000, Reuters reports.

Q2 DELIVERIES: Wells Fargo says that most of Tesla’s May delivery results are now out. Once again, global deliveries are trending meaningfully weaker, with May trending 23% lower year-over-year and Q2 quarter-to-date trending 21% lower year-over-year. All three key regions are double-digit percentage lower, with EU the worst, Wells adds. The firm has an Underweight rating on the shares with a price target of $120.

TRADE SECRETS: Tesla has filed a lawsuit against former Optimus engineer Zhongjie “Jay” Li, who worked at Tesla from 2022 to 2024, accusing him of stealing humanoid robot information and setting up a rival startup, Bloomberg’s Dana Hull reports. “Less than a week after he left Tesla, Proception was incorporated,” according to the complaint. “And within just five months, Proception publicly claimed to have ‘successfully built’ advanced humanoid robotic hands — hands that bear a striking resemblance to the designs Li worked on at Tesla.”

FUNDAMENTALS DETERIORATING: Guggenheim says that while Tesla shares continue to be driven by robotaxi and political narratives in the near-term, the company’s fundamentals “continue to deteriorate at an alarming rate.” The “soft” Q2 delivery trends confirm demand for the refreshed Model Y has not helped Tesla’s sales momentum, says Guggenheim, which expects “sizable” negative revisions in the coming weeks to Q2 delivery estimates. The firm’s 360,000 estimate is well below the consensus of 415,000. Flowing through lower delivery forecasts for Q2 pushes the company’s auto gross margin forecast to 11.5%, below the 14.0% consensus, and free cash flow forecast into negative territory, the analyst tells investors in a research note. Guggenheim believes Tesla’s Q2 should have benefited from pent-up demand for the Model Y refresh, suggesting future delivery volumes and/or pricing could deteriorate further. It believes 2025 and 2026 expectations for Tesla “remain incredibly optimistic and bullish catalysts for the automotive business continue to be disproven.” The firm reiterates a Sell rating on the shares with a $175 price target.

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

BUY FIRST SOLAR: Jefferies upgraded First Solar (FSLR) to Buy from Hold with a price target of $192, up from $157. The firm says it is “time to get constructive again” on the shares. Jefferies increased earnings estimates for First Solar on higher average selling prices in 2028 and beyond. Jefferies sees upside to the estimates if new market pricing rises to the 32c-33c per watt range for new contracts. First Solar is “positioned to command a premium.” The firm sees utility-scale solar as the “most constructive” with the Inflation Reduction Act “still shaking out at the Senate level.” It expects First Solar to benefit from foreign entity of concern restrictions “keeping FEOC exposed suppliers at bay.”

SELL SUNRUN: Jefferies downgraded Sunrun (RUN) to Underperform from Hold with a price target of $5, down from $6. The firm says budget reconciliation “has residential solar on the chopping block.” While Jefferies expects some improvements on the Inflation Reduction Act from the Senate, it sees limited upside for residential, exposing Sunrun to both near- and long-term headwinds. The company will to pivot and adapt to changing tax policy, but this will happen in a contracting market with weakened demand, the firm tells investors in a research note. Jefferies believes the Street misses how consequential the “One Big Beautiful Bill Act” is uniquely on residential solar.