Investor's Corner
Tesla Earnings: Wedbush expects AI, EV demand, Presidency to take focus in Q2 call
Tesla Earnings is today, and Wedbush analyst Dan Ives has plenty of expectations for the automaker’s Q2 call.
Tesla beat expectations for deliveries and solidified a solid quarter for the Energy division with its biggest deployment to date, giving it a chance to run on Wall Street as the past month the stock is up over 36 percent.
However, there are plenty of things that need to be talked about on today’s call, especially Artificial Intelligence and Robotaxi, demand for Tesla’s EVs, and potentially some talk on the U.S. Presidential Election. Wedbush expects to hear from CEO Elon Musk on each of these topics:
AI, FSD, and Robotaxi
Wedbush said in a note to investors ahead of the call that there are plenty of things that need to be confronted on the AI, FSD, and Robotaxi subjects.
Tesla and Musk stand to benefit from a Trump presidency, Ives writes, stating that if he were to win another term, regulatory hurdles may be no more than a simple hop instead of a full-fledged jump for the automaker:
“The Street view is also that a Trump White House potential win could help Musk/Tesla on the FSD regulatory path down the road.”
Tesla will also need to bring more closure to investors regarding the delay and new timing of the Robotaxi unveiling event, which was originally scheduled for August 8.
Tesla delayed the event, Musk confirmed earlier this month, as changes to the vehicle needed to be made:
“The Street will be focused on Musk addressing the timing of Robotaxi Day, which appears to have moved from August 8th to early/mid-October. Addressing the delay in Robotaxi Day and the new timing will be important to hear on the conference call as we believe a linchpin to Tesla reaching $1 trillion+ valuation and ultimately higher over the next year is contingent on the AI/FSD story materializing into a monetization path over the coming years.”
Tesla Demand and Margins
Some analysts have already outlined their concern for margins on this call, especially as Tesla continues to spend in order to get the Cybertruck ramped up.
Ives believes Tesla should “march towards 2 million units annual trajectory” as “clear momentum” has pushed the automaker into a strong position moving forward.
He also commented on the “sweet spot” for margins:
“Auto gross margins (ex credits) in the 16.5%-17% range would be the sweet spot and should mark the beginning of an upward climb into the next few quarters as price cuts appear to be mostly done with price increases in some regions/models seen the last few weeks. A major focus of the conference call will be the overall demand environment, China growth in a competitive/price cut backdrop, and the outlook for the rest of the year.”
U.S. Presidential Election
Ives believes Musk will comment on the U.S. Presidential election as the race has major implications not only for Tesla specifically, but for the EV sector in general.
Musk has publicly supported former President Donald Trump, and although rumors of a $45 million a month donation to the Trump campaign circulated, Musk denied the claims.
However, he has stated explicitly that Trump will get his vote in November.
Ives explains the importance of this being talked about during the call this evening:
“We also expect Musk to address the US Presidential Election with his firm backing for Trump and now a Harris nomination likely for the Democrats heading into November. We continue to believe in the scenario of a Trump win this would be negative for the EV industry but positive for Tesla as removing the tax rebates/incentives would give Musk and Tesla an advantage. The Street view is also that a Trump White House potential win could help Musk/Tesla on the FSD regulatory path down the road. On the other hand a Harris ticket would be a positive for Detroit (GM, Ford, Stellantis) and the EV industry and in theory also help Tesla, although this all remains up for debate among investors. We expect Musk to discuss some of his thoughts around this hot button topic on the conference call tomorrow.”
You can read what investors and analysts want to know on the call here:
Tesla Earnings is tomorrow – Here’s what analysts think you should be looking for
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Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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