S&P 500 pulls back from record high as chip-led slump in tech weighs
Investing.com - Wedbush has reiterated its Outperform rating and $500 price target on Tesla (NASDAQ:TSLA) ahead of the company’s earnings report scheduled for Wednesday. According to InvestingPro data, this target represents significant upside potential, with Tesla currently trading at $328.49. The stock has shown strong momentum with a 30.6% return over the past year, despite high valuation multiples.
The research firm noted a significant shift in investor sentiment compared to three months ago, with CEO Elon Musk now described as a "wartime CEO" focused on Robotaxi expansion in Austin and other cities.
Wedbush highlighted Tesla’s AI initiatives as a key focus for investors, particularly potential investment into xAI that would require a shareholder vote later this year, along with the company’s Optimus robotics program.
The firm values Tesla’s autonomous technology at $1 trillion over the next few years, despite acknowledging that current quarterly numbers are "nothing to write home about."
Wedbush described Tesla as being at a "positive crossroads" with Musk’s renewed focus as CEO, early Robotaxi expansion, stabilizing demand especially in China, and an emerging AI strategy that may include significant ownership in xAI.
In other recent news, Tesla delivered 384,122 vehicles in the second quarter of 2025, closely aligning with Visible Alpha’s consensus expectations of 385,086, though this figure was a decrease from the 443,956 vehicles delivered in the same quarter the previous year. The company produced 410,244 vehicles during the period, which fell short of the analyst consensus of 434,227 but matched the production numbers from Q2 2024. Piper Sandler has maintained its Overweight rating for Tesla, setting a price target of $400.00, and noted that regulatory credit losses are expected to have a limited impact on near-term earnings. Cantor Fitzgerald also reiterated its Overweight rating, with a price target of $355.00, highlighting Tesla’s potential in the autonomous vehicle market. Additionally, Tesla has introduced a series of discounts and incentives for U.S. customers ahead of the expiration of federal tax credits, including a $7,500 lease incentive and reduced financing rates. The company is also offering free upgrades on select inventory models and a $1,000 discount for military personnel, first responders, teachers, and students. In another development, Tesla has appointed Raj Jegannathan, an IT executive, as head of sales amid declining sales figures. This change follows the departure of Troy Jones, the former top sales executive in North America.
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