Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Tesla is heading into its second-quarter earnings report under pressure, with Bank of America warning that results are “likely to be challenged due to tariffs and disappointing deliveries.”
In a preview of the upcoming earnings season, BofA analysts placed Tesla (NASDAQ:TSLA) in a more difficult position compared to its Detroit peers.
“Tesla is the most challenged among the three OEMs given disappointing deliveries, IRA incentives phasing out, and tariffs,” the bank wrote.
While Tesla manufactures its vehicles in the U.S. with a high proportion of North American content, BofA noted the company is still vulnerable to international trade measures.
“The exposure to tariff is not insignificant,” analysts said, citing Tesla’s reliance on batteries made in China, particularly for its energy business.
Looking ahead, BofA expects mixed results in the second half of the year. “3Q25 may benefit from demand pull forward in the US while 4Q25 may be challenged due to the phase out of IRA incentives,” the firm said.
On the upside, Tesla’s autonomous ambitions continue to take shape, with the company recently launching its Robotaxi service in Austin, Texas.
“This gives us more confidence on the promise to deliver unsupervised FSD by the end of 2025,” BofA said, though the bank added that the launch has “immaterial financial ramifications in the immediate term.”
Despite near-term headwinds, BofA raised its price objective for Tesla shares to $341 from $305, reflecting a higher cash balance and updated valuation assumptions. The firm reiterated its Neutral rating.