Tesla (NASDAQ: TSLA) is ready to report its earnings for the second quarter of 2025 tomorrow, and though Wall Avenue agency Wedbush is bullish as the corporate seems to have its “wartime CEO” again, it’s searching for solutions to a couple issues traders may have transferring ahead.
The agency’s lead analyst on Tesla, Dan Ives, has saved a bullish sentiment concerning the inventory, at the same time as Musk’s focus appeared to be extra on politics and fewer on the corporate.
Nevertheless, Musk has not too long ago returned to his previous perspective, which is being fully devoted and devoted to his firms. He even stated he could be sleeping in his workplace and dealing seven days every week:
Again to working 7 days every week and sleeping within the workplace if my little children are away https://t.co/77cc6sRCFZ
— Elon Musk (@elonmusk) July 20, 2025
However, Ives has continued to push solutions 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 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 observe to traders that was launched on Tuesday morning:
“Clearly, shedding the EV tax credit with the latest Beltway Invoice can be a headwind to Tesla and opponents within the EV panorama wanting forward, and this money cow will turn into much less of the story (and FCF) in 2026. We might anticipate some directional steerage on this subject 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 price $1 trillion for Tesla, particularly because it continues to increase 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 vital 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 larger 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 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 latest 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 fulfill rising demand within the marquee area. If Musk continues to steer 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’ score and held its $500 worth goal.
