Tesla's Big Day: What Experts Are Saying

Tesla is about to share its second-quarter results, and experts are not too optimistic. The company's car deliveries dropped by 14% last month, and analysts think earnings might fall by 21% from last year. They expect revenue to be down by over 11% too. This follows a first quarter where car sales dropped by 20%, and total revenue fell by 9%. Tesla's stock hit a low in April but has since bounced back after CEO Elon Musk stepped down from a government role. The stock is still down 18% for the year, even after a recent 40% rise. Wall Street is divided on Tesla. Some analysts think the stock is a good buy, while others say it's overvalued. UBS, for example, thinks Tesla is too expensive and could drop by 35%. They point to problems in the car business and Elon Musk's focus on other things. Evercore ISI is also cautious, noting negative changes in estimates and delays in self-driving car rollouts. Barclays sees a mix of good and bad news, with possible improvements in car margins but delays in new models. Baird is worried about car sales and margin squeezes in the energy segment. Bank of America expects challenges due to tariffs and delays in new models, but sees hope in the robotaxi service. Deutsche Bank is cautiously optimistic, while Cantor Fitzgerald and Piper Sandler see potential for growth. Stifel is the most bullish, predicting a 36% rise in the stock.