Tesla (NASDAQ: TSLA) is ready to report its earnings for the second quarter of 2025 tomorrow, and though Wall Road agency Wedbush is bullish as the corporate seems to have its “wartime CEO” again, it’s in search of solutions to some issues buyers might have transferring ahead.
The agency’s lead analyst on Tesla, Dan Ives, has saved a bullish sentiment relating to the inventory, at the same time as Musk’s focus appeared to be extra on politics and fewer on the corporate.
Nevertheless, Musk has just lately returned to his previous perspective, which is being utterly devoted and devoted to his corporations. He even mentioned he could be sleeping in his workplace and dealing seven days per week:
Again to working 7 days per week and sleeping within the workplace if my little youngsters are away https://t.co/77cc6sRCFZ
— Elon Musk (@elonmusk) July 20, 2025
Nonetheless, Ives has continued to push recommendations ahead about what Tesla ought to do, what its potential valuation may very well be within the coming years with autonomy, and the way it will cope with the lack of the EV tax credit score.
Tesla preps to increase Robotaxi geofence as soon as once more, answering Waymo
These questions are on the forefront of what Ives suggests Tesla ought to confront on tomorrow’s name, he wrote in a notice to buyers that was launched on Tuesday morning:
“Clearly, dropping the EV tax credit with the current Beltway Invoice will likely be a headwind to Tesla and opponents within the EV panorama wanting forward, and this money cow will grow to be much less of the story (and FCF) in 2026. We might anticipate some directional steering on this subject through the convention name. Importantly, we anticipate deliveries globally to rebound in 2H led by some enchancment on the important thing China entrance with the Mannequin Y refresh a catalyst.”
Ives and Wedbush imagine the autonomy may very well be price $1 trillion for Tesla, particularly because it continues to increase all through Austin and finally to different territories.
Within the close to time period, Ives expects Tesla to proceed its path of returning to progress:
“Whereas the corporate has seen important weak spot in China in earlier quarters given the rising aggressive panorama throughout EVs, Tesla noticed a rebound in June with gross sales rising for the primary time in eight months reflecting greater demand for its up to date Mannequin Y as deliveries within the area are beginning to slowly flip a nook with China representing the center and lungs of the TSLA progress story. Regardless of seeing extra low-cost fashions enter the market from Chinese language OEMs like BYD, Nio, Xpeng, and others, the corporate’s current updates to the Mannequin Y spurred elevated demand whereas the accelerated manufacturing ramp-up in Shanghai for this refresh cycle mirrored TSLA’s skill to satisfy rising demand within the marquee area. If Musk continues to guide and stay within the driver’s seat at this tempo, we imagine Tesla is on a path to an accelerated progress path over the approaching years with deliveries anticipated to ramp within the back-half of 2025 following the Mannequin Y refresh cycle.”
Tesla will report earnings tomorrow at market shut. Wedbush maintained its ‘Outperform’ score and held its $500 value goal.
