Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Baird has reiterated its Neutral rating on Tesla (NASDAQ:TSLA) with a price target of $320.00 following the electric vehicle maker's recent earnings report. According to InvestingPro data, analyst targets for Tesla range from $115 to $500, with 16 analysts recently revising their earnings expectations downward.
The company's quarterly results came in slightly above consensus estimates that had been lowered after Tesla's second-quarter delivery announcement. With current gross profit margins at 17.66% and annual revenue of $95.72B, Tesla maintains a strong market position despite challenges. According to Baird, the most surprising element in the financial results was the stronger-than-expected profitability of Tesla's Energy business.
Baird noted that CEO Elon Musk provided mixed commentary during the earnings call, offering outlooks and timelines for the company's robotaxi initiative while simultaneously pushing back timelines for other projects such as the Optimus humanoid robot.
The research firm raised questions about how long Tesla can "get a pass on timelines" for its various initiatives, highlighting the company's work on "revolutionary products" including Robotaxi, Optimus, and the Dojo supercomputer.
Baird maintained its Neutral stance on Tesla stock, explaining that near-term financial performance is likely to become the primary focus for investors despite the company's ambitious product roadmap.
In other recent news, Tesla reported second-quarter revenue of $22.5 billion and earnings per share of $0.40, aligning closely with consensus estimates of $22.6 billion and $0.42, respectively. The company's automotive gross margins, excluding zero-emission vehicle credits, improved to approximately 15%, surpassing analyst expectations of 13.3% and marking a 250 basis point increase from the previous quarter. Canaccord Genuity raised its price target for Tesla to $333.00 from $303.00, maintaining a Buy rating, based on a multiple of the firm's 2027 estimated non-GAAP earnings per share. Mizuho (NYSE:MFG) reiterated an Outperform rating with a $375.00 price target, despite concerns about future demand challenges. Barclays (LON:BARC) maintained an Equalweight rating with a $275.00 price target, acknowledging Tesla's AI initiatives and potential beyond automotive manufacturing. Piper Sandler reaffirmed its Overweight rating with a $400.00 price target, describing Tesla's financial results as solid despite an after-hours stock price drop. Truist Securities kept a Hold rating with a $280.00 price target, noting that Tesla's Q2 performance was "noisy" but met expectations. These developments highlight a mix of confidence and caution among analysts regarding Tesla's future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.