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Investing.com - Tesla (NASDAQ:TSLA) received a reiterated Perform rating from Oppenheimer following the electric vehicle maker’s second-quarter 2025 delivery report, which met analyst expectations. According to InvestingPro data, Tesla maintains a strong financial position with a healthy current ratio of 2.0 and more cash than debt on its balance sheet.
Oppenheimer noted that Tesla’s Model 3 and Model Y deliveries outperformed expectations, with U.S. factories likely producing approximately 165,000 vehicles during the quarter. The firm attributed this relatively strong sell-through to the refreshed Model Y. With trailing twelve-month revenue reaching $95.72 billion, Tesla continues to demonstrate its position as a prominent player in the automotive industry, though InvestingPro analysis indicates the stock is trading above its Fair Value.
The investment firm anticipates higher Model 3 and Model Y sales will support margins, helping to offset disappointing sales figures for the Model S, Model X, and Cybertruck. Oppenheimer expects investors to quickly shift their focus to Full Self-Driving (FSD) performance and Tesla’s ability to maintain both margins and free cash flow. Current gross profit margins stand at 17.66%, while the stock trades at a P/E ratio of 157.88, reflecting high growth expectations.
Oppenheimer predicts Tesla stock will rally and maintain gains leading up to the company’s second-quarter 2025 financial results, which are expected later this month. The firm believes bullish investors will point to improving sales in China as an indicator of increasing global demand.
The research note also mentioned that bears will likely continue to highlight Tesla’s relative market share losses, question the company’s technology leadership, and point to recent leadership changes as signs of potential challenges ahead.
In other recent news, Tesla reported a slight increase in its China-made electric vehicle sales for June, with a 0.8% rise compared to the previous year, reaching 71,599 units, according to the China Passenger Car Association. This marks the end of an eight-month streak of declining sales for Tesla in China. The company’s Model 3 and Model Y vehicles manufactured at its Shanghai factory saw a 16.1% increase in deliveries compared to May. In Spain, Tesla experienced a surge in new car sales, with registrations rising 60.7% in June compared to the same month in 2023, although sales for the first half of 2024 were down slightly by 0.9%. In Norway, Tesla led new car registrations in the first half of 2023, capturing a 17.3% market share, with the Model Y emerging as the most registered car model. Additionally, Tesla’s CEO Elon Musk’s artificial intelligence startup, xAI Corp., added Barclays (LON:BARC), Mitsubishi UFJ (NYSE:MUFG) Financial Group, and UBS Group to its recent $5 billion debt deal, joining Morgan Stanley (NYSE:MS) in the financing arrangement. Meanwhile, U.S. President Donald Trump commented on Musk’s potential losses related to the electric vehicle mandate in the recent tax and spending bill, suggesting further scrutiny of subsidies received by Musk’s companies.
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