Tesla Heads Into Its July 22 Earnings Down 22%, and One Firm Sees a 67% Plunge From Here. Who's Right?
Twenty-five percent delivery growth on one side. A 67% downside call on the other. Wednesday's report starts to settle it.
Overview
Tesla (NASDAQ: TSLA) heads into its second-quarter earnings report this Wednesday, July 22, carrying two stories that can't both be right. The electric-car maker just delivered 480,126 vehicles in Q2, up 25% year over year and its highest quarterly total since the third quarter of 2025. Yet the stock sits at about $391 as of this writing, down 22% from its 52-week high of $498.83.
And one Wall Street firm thinks the decline is just getting started. Last week, Wells Fargo raised its Tesla price target to $130 from $125 while keeping its underweight rating. From today's price, that target implies a drop of about 67%.
Details
The firm's reasoning, in essence, is that Tesla is selling more cars than it has in any quarter since the third quarter of 2025 but earning less on each one, with price cuts and rising input costs (memory chips, copper, and lithium among them) eating away the gains.
Source
Originally published at www.fool.com.