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Investing.com -- Tesla’s second-quarter results delivered a mix of optimism around long-term AI initiatives and caution over near-term challenges, with Wall Street analysts offering a range of reactions.
Bank of America described the results as “slightly better than expected,” with non-GAAP EPS of $0.40, topping the bank’s estimate of $0.35.
Strong performance from the Energy business and improved auto gross margins supported the beat.
However, BofA warned of “rough quarters” ahead as U.S. EV incentives phase out and tariff impacts increase. “By end of 2026, management thinks that Tesla’s economics will be compelling with autonomy at scale,” the analysts said, reiterating a Neutral rating.
Morgan Stanley (NYSE:MS) highlighted the company’s balancing act, saying Tesla (NASDAQ:TSLA) is “crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs and investing in new initiatives that may not make margins for years.”
Barclays (LON:BARC) took a more skeptical view, noting the “widening gulf between narrative and fundamentals.”
While Tesla’s AI vision remains intact, the firm said, “fundamentals remain choppy, and are likely to deteriorate in the coming quarters.” It maintained an Equal Weight rating and $275 price target on the stock.
Stifel saw the update as largely neutral, but pointed to promising developments like the expansion of robotaxis in Austin and expected rollout of unsupervised FSD by year-end.
Still, it flagged negative sentiment on demand and delays to new model ramps.
Piper Sandler remained bullish, calling it “a good Q” and questioning the post-market selloff.
“We don’t really care what Tesla’s next product looks like,” the analysts said, emphasizing long-term FSD potential over short-term noise.
Overall, analysts agreed Tesla’s AI ambitions remain central, but warned of turbulence before the full autonomy story plays out.