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Investing.com - Tesla (NASDAQ:TSLA) received a reiterated Outperform rating and $375.00 price target from Mizuho (NYSE:MFG) on Thursday, despite reporting mixed second-quarter results and cautioning about future demand challenges. According to InvestingPro data, analyst targets for Tesla range from $115 to $500, reflecting the market's divided outlook on this volatile stock currently trading at a P/E ratio of 175x.
The electric vehicle maker reported second-quarter revenue of $22.5 billion and earnings per share of $0.40, largely in line with consensus estimates of $22.6 billion and $0.42, respectively. Automotive gross margins excluding zero-emission vehicle credits improved to approximately 15%, exceeding analyst expectations of 13.3% and representing a 250 basis point increase quarter-over-quarter. InvestingPro analysis shows Tesla maintains strong financial health with a 'GOOD' overall score, despite relatively weak gross profit margins of 17.66% over the last twelve months.
Tesla declined to provide full-year 2025 delivery guidance, citing "shifting global trade and fiscal policies" as a factor in its decision. Second-quarter deliveries decreased approximately 14% year-over-year, with Mizuho estimating full-year 2025 deliveries will decline 11% compared to 2024. For deeper insights into Tesla's financial metrics and growth prospects, InvestingPro subscribers can access 18 additional ProTips and a comprehensive Pro Research Report, part of our coverage of 1,400+ US stocks.
The company warned that the end of electric vehicle subsidies in the September quarter could lead to "rough quarters in 4Q25/1H26" and emphasized the need to drive affordability and sales without subsidy support. North American test drives increased 20% quarter-over-quarter, suggesting potentially improved demand in the second half of 2025.
Mizuho maintained its Outperform rating despite near-term electric vehicle demand headwinds, expressing confidence that Tesla remains well-positioned to disrupt the autonomous vehicle and robotics markets.
In other recent news, Tesla reported its second-quarter 2025 earnings, which aligned with market expectations for earnings per share (EPS) and slightly surpassed revenue forecasts. The company's EPS was $0.40, meeting analysts' predictions, while revenue reached $22.5 billion, just above the anticipated $22.4 billion. Despite these results, Tesla's stock experienced a minor decline in aftermarket trading. Piper Sandler reiterated its Overweight rating with a $400 price target, describing the financial results as "solid." Truist Securities maintained a Hold rating with a $280 price target, noting that Tesla's Q2 performance was "noisy," though revenue and EPS met expectations. Canaccord Genuity raised its price target for Tesla to $333 from $303, maintaining a Buy rating on the shares. The price target increase reflects a multiple of approximately 38 times the firm's 2027 estimated non-GAAP earnings per share for Tesla. These developments highlight the mixed reactions from analysts despite the company's financial performance.
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