Tesla stock price target raised to $319 from $307 at RBC Capital

Published 09/07/2025, 06:36
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Investing.com - RBC Capital has raised its price target on Tesla (NASDAQ:TSLA) to $319.00 from $307.00 while maintaining an Outperform rating on the electric vehicle maker’s stock. The new target sits well within the broader analyst range of $115 to $500, with the current stock price at $297.81. According to InvestingPro data, 13 analysts have recently revised their earnings expectations downward for the upcoming period.

Tesla reported 384,000 vehicle deliveries in Q2 2025, which aligned with the consensus expectations. The company also recorded 9.6GWh of energy storage sales during the quarter, slightly below recent quarterly levels. With a substantial market capitalization of $959.23 billion, Tesla maintains its position as a prominent player in the automotive industry.

RBC Capital forecasts Tesla’s automotive gross margins excluding credits at 13.7% for the quarter, marginally above the consensus estimate of 13.4%. This would represent an improvement from Q1’s 12.5% level, which was impacted by intentional shutdowns for the Model Y refresh. InvestingPro analysis reveals that Tesla’s overall gross profit margin stands at 17.66%, with the platform offering deeper insights into the company’s financial health, which is currently rated as FAIR.

For full-year 2025, RBC projects automotive gross margins excluding credits of 13.6%, below the consensus forecast of 13.9%. The firm also expects annual deliveries to decline by 7% year-over-year, which is slightly better than the consensus projection of an 8% decrease.

RBC Capital noted that new affordable Tesla models expected in Q3 should help stem losses, as first-half 2025 deliveries were down 13% compared to the same period last year. Get access to Tesla’s comprehensive financial analysis and 14 additional key insights through InvestingPro’s exclusive research report.

In other recent news, Tesla reported a 12% increase in new car sales in the UK for June, driven by the introduction of its updated Model Y. The company sold 7,891 units compared to 7,019 units in the same month last year, aligning with a broader growth trend in the UK car market. Meanwhile, Tesla’s second-quarter delivery numbers fell slightly short of expectations, with 384,122 vehicles delivered, compared to the anticipated 385,086. Despite this, Cantor Fitzgerald maintained its Overweight rating on Tesla, with a price target of $355.00. Tesla’s production also came in below projections, with 410,244 vehicles produced against an estimate of 434,227. Additionally, Tesla deployed 9.6 gigawatt-hours of energy storage products, which was below the expected 11.8 GWh. In other developments, Virgin Atlantic Airways announced a partnership with SpaceX’s Starlink to provide free Wi-Fi across its fleet by 2027. This move will make Virgin Atlantic the first UK airline to offer streaming-quality internet access on flights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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