Tesla (NASDAQ: TSLA) is about 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 on the lookout for solutions to a couple issues buyers may have shifting ahead.
The agency’s lead analyst on Tesla, Dan Ives, has stored a bullish sentiment concerning the inventory, whilst Musk’s focus gave the impression to be extra on politics and fewer on the corporate.
Nonetheless, Musk has lately returned to his previous angle, which is being fully devoted and devoted to his firms. He even stated he can 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 children are away https://t.co/77cc6sRCFZ
— Elon Musk (@elonmusk) July 20, 2025
Nonetheless, Ives has continued to push options ahead about what Tesla ought to do, what its potential valuation could possibly be within the coming years with autonomy, and the way it will take care of the lack of the EV tax credit score.
Tesla preps to broaden 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 probably be a headwind to Tesla and opponents within the EV panorama trying forward, and this money cow will turn into much less of the story (and FCF) in 2026. We’d count on some directional steerage on this matter throughout 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 consider the autonomy could possibly be value $1 trillion for Tesla, particularly because it continues to broaden all through Austin and ultimately to different territories.
Within the close to time period, Ives expects Tesla to proceed its path of returning to development:
“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 increased demand for its up to date Mannequin Y as deliveries within the area are beginning to slowly flip a nook with China representing the guts and lungs of the TSLA development 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 capacity to fulfill rising demand within the marquee area. If Musk continues to guide and stay within the driver’s seat at this tempo, we consider Tesla is on a path to an accelerated development 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’ ranking and held its $500 value goal.
