Tesla stock price target maintained at $475 by Benchmark ahead of Q2 results

Investing.com - Benchmark maintained its Buy rating and $475.00 price target on Tesla (NASDAQ:TSLA) ahead of the electric vehicle maker’s upcoming quarterly results on July 23. Currently trading at $332.1 with a market capitalization of $1.06 trillion, InvestingPro analysis suggests the stock is trading above its Fair Value.

The research firm forecasts Tesla will report revenues of approximately $22.7 billion for the second quarter, representing a sequential increase of 17% from $19.3 billion in the first quarter.

Benchmark’s revenue projection stands slightly above the consensus estimate of $22.3 billion, suggesting stronger-than-expected sales performance for the period.

The firm’s earnings per share estimate of $0.33 falls modestly below the consensus forecast of $0.40, reflecting anticipated near-term margin pressures from multiple factors.

These margin headwinds include tariffs, pricing challenges in the competitive electric vehicle market, and elevated warranty expenses that are expected to impact Tesla’s profitability in the quarter.

In other recent news, Tesla’s electric vehicle registrations in California have seen a significant decline, dropping 21.1% in the second quarter. The California New Car Dealers Association reported that Tesla recorded 41,138 vehicle registrations during the April-June period, down from 52,119 units in the same quarter of the previous year. Meanwhile, Gene Munster from Deepwater Asset Management highlighted key areas for investors to focus on during Tesla’s upcoming earnings call, specifically the robotaxi expansion and the timing of a more affordable vehicle. Stifel has also updated its models for Tesla, noting that incentives, pricing, and margin profiles are critical metrics for investors to consider. Additionally, a Bloomberg report revealed that SpaceX warned investors about the potential for Elon Musk to re-engage in U.S. politics, which Tesla investors seemed to overlook. These developments provide a snapshot of the current landscape for Tesla as it navigates its market challenges and strategic opportunities.

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