S&P 500 cuts losses as Nvidia climbs ahead of results
Investing.com - HSBC reiterated its Reduce rating on Tesla (NASDAQ:TSLA) with a price target of $120.00, citing concerns about the sustainability of recent delivery growth. According to InvestingPro data, analyst targets for Tesla range from $115 to $500, with 14 analysts recently revising their earnings expectations downward.
The investment bank noted that Tesla’s second-quarter volumes increased 14% quarter-over-quarter, broadly in line with consensus estimates, despite retail figures in major markets tracking at only +2% quarter-over-quarter. The company, currently valued at over $1 trillion, has maintained its position as a prominent player in the automobile industry, though InvestingPro analysis indicates it’s trading at a notably high P/E ratio of 165.
HSBC highlighted that June deliveries were exceptionally strong, accounting for 47% of Q2 deliveries compared to the historical range of 41-44%, creating what the firm described as a difficult-to-explain sales bump.
The bank questioned whether this delivery pace is sustainable, suggesting that while third-quarter sales might see some pulled-forward demand ahead of a new tax bill, the June run-rate of 170,000-180,000 units is unlikely to become "the new normal."
HSBC maintained its cautious view on Tesla’s volume development, pointing to first-half sales still being down 13% year-over-year on an already weak base, while citing Tesla’s static model portfolio, increasing competition, and the absence of a promised more affordable model as ongoing challenges. InvestingPro data reveals the company’s gross profit margin stands at 17.66%, with revenue reaching $95.72 billion in the last twelve months. For deeper insights into Tesla’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, check out the Pro Research Report available on InvestingPro.
In other recent news, Rivian Automotive (NASDAQ:RIVN) Inc. received a $1 billion equity investment from Volkswagen (ETR:VOWG_p) Group, which is part of a larger $5.8 billion agreement linked to their technology joint venture. This investment arrives as Rivian confirmed its second-quarter 2025 delivery announcement, meeting expectations and reaffirming its 2025 delivery guidance. Canaccord Genuity maintained its Buy rating on Rivian, highlighting the Volkswagen partnership as alleviating capital concerns. Meanwhile, Tesla reported delivering 384,000 vehicles in the second quarter of 2025, surpassing market expectations despite a 13% year-over-year decline. Deutsche Bank (ETR:DBKGn) maintained its Buy rating on Tesla, noting stronger U.S. sales and improved performance in Asian markets. Tesla’s energy storage business deployed 9.6 gigawatt-hours, which fell short of some analyst expectations. Oppenheimer maintained a Perform rating for Tesla, citing strong Model 3 and Model Y deliveries. Tesla’s China-made electric vehicle sales increased slightly in June, ending an eight-month decline, with the Shanghai factory seeing a 16.1% rise in deliveries of these models compared to May.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.