Tesla (TSLA) stock declined over 4% in pre-market trading on Monday as the EV giant gears up to report its first-quarter earnings tomorrow. The company and the stock had a bumpy start to 2025, weighed down by slowing deliveries, rising EV competition, and mounting backlash against CEO Elon Musk. Overall, investors are nervously hoping that Tesla’s roadmap offers more than just autopilot reassurance.
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All Eyes on TSLA Stock
The mix of external controversies, internal challenges, and broader economic headwinds adds a lot of uncertainty to Tesla’s stock.
Experts say long-term investors might find value after the earnings report, but it’s smart to take it slow. Paying close attention to Tesla’s forward guidance, particularly about production and delivery projections, will be key for future investment decisions.
Wall Street Keeps Cautious Outlook on Tesla’s Q1 Results
The report comes at a key moment for Tesla, as recent sales figures and stock trends have made analysts more cautious. Regarding the figures, Wall Street expects Tesla to post earnings of $0.43 per share, marking a 4% decline from the same period last year. Meanwhile, revenue is projected to come in at $21.45 billion with a modest increase of just 0.7%.
Some analysts remain positive about Tesla’s progress in autonomous driving and robotics, anticipating that the upcoming report may highlight potential growth drivers. For instance, Piper Sandler’s five-star-rated analyst Alexander Potter maintained his Buy rating on TSLA stock, pointing out that Tesla could still surge if major catalysts emerge. However, Potter reduced his price target from $450 to $400 as he believes that Q1 financials will likely disappoint.
At the same time, others point out that the EV segment remains Tesla’s core revenue source, suggesting that any further decline in vehicle sales could have a major impact on its overall performance. Consequently, analysts from Barclays and BNP Paribas hold a bearish outlook on Tesla’s Q1 results. They highlight several challenges, including lower gross margins, expected drops in vehicle deliveries for 2025, reduced production, higher tariff costs, and more.
What Is the 12-Month Price Target for Tesla Stock?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 11 Holds, and 12 Sells assigned in the last three months. The average price target for Tesla shares is $296.66, suggesting a potential upside of 23% from the current level.