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Roth Capital has a ‘Buy’ rating on the stock and $395 price target, representing an upside of over 20% on the stock’s closing price on Monday.
Roth Capital opined on Tuesday that the positives from robotaxi and humanoid robot Optimus are likely to outweigh the EV weakness in Tesla Inc.’s (TSLA) second-quarter earnings.
The brokerage said that the timing for a low-cost vehicle model, among other factors, should outweigh any possible weak vehicle delivery guidance.
The brokerage has assigned a ‘Buy’ rating to the stock and a $395 price target, representing an upside of over 20% from the stock’s closing price on Monday.
On Stocktwits, retail sentiment regarding Tesla has trended in the ‘neutral’ territory over the past 24 hours, while message volume has remained at ‘low’ levels.
Retail chatter about Tesla increased by 150% over the past 24 hours and by 92% over the last 30 days.
Tesla is scheduled to report its second-quarter earnings after the closing bell on Wednesday. Analysts on average expect the company to report an earnings per share of $0.4, below the $0.52 reported in the corresponding quarter of 2024.
Revenue for the three months through the end of June is expected to be $22.12 billion, down from the $25.5 billion reported for the corresponding period of 2024.
According to the questions raised on the Say Technologies platform by shareholders ahead of the earnings call, investors are seeking insights into the robotaxi’s performance, the company’s more affordable models, its development pipeline for full self-driving driver assistance software, and details about the company’s humanoid robot, Optimus, among other topics.
Tesla pilot launched robotaxis in Austin, Texas, in late June within a small geographical area. Musk expects to launch more robotaxis in more cities in time.
After testing Tesla's robotaxi service in Austin, Texas, for a full day, JPMorgan's head of global automotive research, Jose Asumendi, said on Tuesday that the experience was "certainly solid and felt like a safe ride at all times." JPMorgan also believes robotaxis could boost the pricing power of new car sales.
As for FSD, Musk expects the technology to enable fully autonomous driving in the near future. However, it currently requires active driver supervision.
Tesla had also previously announced that it would launch more affordable vehicles in the first half of 2025, which appears to have been delayed. Investors are now looking for a new launch deadline.
As for Optimus, Musk has previously stated that it will, in time, serve as a general-purpose robot, and that sales to external customers will commence in 2026, following its deployment at Tesla factories this year.
Tesla reported deliveries of 384,122 units in Q2, marking a 13.5% year-over-year decline and the second consecutive quarter of declining deliveries.
In 2024, the company reported deliveries of around 1.79 million units, down from 1.81 million deliveries in 2023, marking a year-on-year delivery drop in at least nine years. With two quarterly deliveries dropping, 2025 delivery numbers are also expected to fall.
A Stocktwits user hoped for ‘good numbers’ on Wednesday.
TSLA stock is down 18% year-to-date and up approximately 32% over the past 12 months.
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