Tesla's Earnings Flop Trips Up These ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 25 2025
0mins
Should l Buy TSLA?
Source: Benzinga
Tesla's Q2 Performance Impact: Tesla Inc. reported disappointing Q2 earnings, missing forecasts with adjusted earnings of 33 cents per share and a 12% year-over-year revenue decline, leading to significant drops in several ETFs heavily invested in the company.
Investor Sentiment and Future Prospects: Despite the poor quarterly results, Tesla is pursuing ambitious projects like its robotaxi service, which could provide long-term growth potential, but current market sentiment remains cautious due to recent performance issues.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 391.950
Low
25.28
Averages
401.93
High
600.00
Current: 391.950
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tesla's Electric Vehicle Sales Continue Decline
- Sales Performance Decline: Tesla delivered 1.79 million EVs in 2024, a 1% drop, and further decreased by 9% to 1.63 million in 2025, with the EV business accounting for over 70% of total revenue, indicating significant financial drag due to sluggish sales.
- Profitability Impact: The company's automotive revenue fell by 10% in 2025, leading to a 3% decline in total revenue, while earnings per share crashed by 47% due to price cuts aimed at attracting customers, highlighting the pressure on profitability amid fierce competition.
- First Quarter Delivery Data: In Q1 2026, Tesla delivered 358,023 EVs, below Wall Street's estimate of 370,000, yet representing a 6% year-over-year increase, which could bolster investor confidence if the subsequent earnings report reflects overall revenue growth.
- Future Product Strategy: Musk plans to launch the Cybercab robotaxi and Optimus humanoid robot by the end of 2026, which may generate revenue in the long term, but could negatively impact short-term financial results, necessitating close monitoring of future developments.
See More
Tesla Developing Low-Cost SUV Amid European Sales Surge
- European Market Recovery: Tesla's registrations surged in March, with a 160% year-over-year increase in Germany and an astounding 203% in France, indicating a strong recovery in the electric vehicle market that could support a rebound in Tesla's stock price.
- New Model Exploration: Tesla is reportedly exploring the development of a new SUV priced below the Model Y, which, if realized, could open the door to the mass market and significantly boost sales and market share.
- Stock Volatility: Despite Tesla's stock being down 19% year-to-date, investor anticipation is building ahead of the upcoming earnings report, particularly regarding the potential for a European-led recovery in electric vehicle demand.
- Increased Competitive Pressure: With competitors like BYD gaining market share in Europe, Tesla's plan to introduce a budget-friendly SUV could be a crucial factor in maintaining its competitive edge and solidifying its leadership position in the electric vehicle industry.
See More
Tesla's Outlook for the Next Three Years
- Valuation Risk Analysis: Tesla's current valuation, with a stock price around $352, shows a wide range of analyst earnings per share estimates from $1.81 to $11.29, with a mean of $4.81, indicating high uncertainty in future profitability that could lead to stock price volatility.
- Robotaxi Potential: CEO Elon Musk views robotaxis not merely as an adjunct to Tesla's EV business but as the inevitable future of the automotive market; if the Cybercab is successfully launched, it is expected to be used 50 to 60 hours a week, significantly enhancing profitability.
- Cost Advantage and Market Revolution: Achieving a $0.20-per-mile cost basis for the Cybercab, combined with its efficient full self-driving hardware and software, could revolutionize the automotive market, prompting investors to pay a premium for Tesla's stock, reflecting optimism about its long-term growth.
- Regulatory and Market Acceptance: The success of Tesla's unsupervised robotaxi service in gaining widespread approval will directly impact its future stock price; despite currently limited service in Austin, Texas, successful expansion could lead to significant stock price increases.
See More
Tesla's Outlook for the Next Three Years
- Robotaxi Prospects: Tesla CEO Elon Musk envisions autonomous driving and robotaxis as the future of the automotive market, with expectations that the Cybercab will be utilized 50 to 60 hours per week, significantly enhancing revenue potential.
- Earnings Expectation Variance: Wall Street estimates for Tesla's earnings per share over the next three years show a wide range, with a high of $11.29 and a low of $1.81, indicating high uncertainty regarding the company's future performance.
- Valuation Challenges: Despite Tesla's stock price being around $352, even the highest earnings estimate results in a price-to-earnings ratio of 31, reflecting market caution regarding its future growth.
- Regulatory Risks and Opportunities: The limited operation of Tesla's robotaxi service in Austin, Texas, will impact its future stock price; however, despite regulatory risks, the market remains optimistic about potential price increases.
See More
Goldman Sachs Bullish on Pony.ai and WeRide
- Goldman Ratings: Goldman Sachs initiated coverage on Pony.ai and WeRide with Buy ratings, highlighting their edge in autonomous driving technology and rapid commercialization in China and overseas, which is expected to drive future revenue growth for both companies.
- Price Targets Set: Goldman set a target price of HK$54.23 for WeRide and HK$234 for Pony.ai, despite both stocks showing weakness in the Hong Kong market, with WeRide down about 3% and Pony.ai down 4% at the time of reporting.
- Revenue Growth Forecast: Goldman predicts WeRide's revenue will grow at an 80% CAGR from 2025 to 2030, primarily driven by the expansion of its global robotaxi services, with its fleet expected to increase from 2,800 vehicles in 2026 to 415,000 by 2032.
- Market Competition Pressure: Despite Goldman’s bullish outlook, retail sentiment on Stocktwits remains cautious, with Pony.ai showing a bearish sentiment and WeRide a neutral stance, reflecting the complex market perceptions surrounding China's autonomous driving sector.
See More
Tesla Stock Plummets 20% Amid EV Sales Struggles
- Weak EV Sales: Tesla delivered 1.79 million EVs in 2024, down 1%, and further declined by 9% to 1.63 million in 2025, with the EV business accounting for over 70% of total revenue, severely impacting financial performance due to sluggish sales.
- Profitability Decline: The automotive revenue fell by 10% in 2025, dragging total revenue down by 3%, while earnings per share crashed by 47% due to price cuts aimed at attracting customers, highlighting profitability pressures amid fierce competition.
- Future Product Outlook: Tesla delivered 358,023 EVs in Q1 2026, below Wall Street's estimate of 370,000, yet representing a 6% year-over-year increase, which could bolster investor confidence if the upcoming earnings report confirms revenue growth.
- Autonomous Vehicles and Robotics Plans: Musk anticipates starting production of the Optimus humanoid robot by late 2026, with a potential market value of $10 trillion, but the timeline for achieving significant production scale remains unclear, necessitating close monitoring of future updates.
See More
Tesla's Electric Vehicle Sales Continue Decline
- Sales Performance Decline: Tesla delivered 1.79 million EVs in 2024, a 1% drop, and further decreased by 9% to 1.63 million in 2025, with the EV business accounting for over 70% of total revenue, indicating significant financial drag due to sluggish sales.
- Profitability Impact: The company's automotive revenue fell by 10% in 2025, leading to a 3% decline in total revenue, while earnings per share crashed by 47% due to price cuts aimed at attracting customers, highlighting the pressure on profitability amid fierce competition.
- First Quarter Delivery Data: In Q1 2026, Tesla delivered 358,023 EVs, below Wall Street's estimate of 370,000, yet representing a 6% year-over-year increase, which could bolster investor confidence if the subsequent earnings report reflects overall revenue growth.
- Future Product Strategy: Musk plans to launch the Cybercab robotaxi and Optimus humanoid robot by the end of 2026, which may generate revenue in the long term, but could negatively impact short-term financial results, necessitating close monitoring of future developments.
See More
Tesla Developing Low-Cost SUV Amid European Sales Surge
- European Market Recovery: Tesla's registrations surged in March, with a 160% year-over-year increase in Germany and an astounding 203% in France, indicating a strong recovery in the electric vehicle market that could support a rebound in Tesla's stock price.
- New Model Exploration: Tesla is reportedly exploring the development of a new SUV priced below the Model Y, which, if realized, could open the door to the mass market and significantly boost sales and market share.
- Stock Volatility: Despite Tesla's stock being down 19% year-to-date, investor anticipation is building ahead of the upcoming earnings report, particularly regarding the potential for a European-led recovery in electric vehicle demand.
- Increased Competitive Pressure: With competitors like BYD gaining market share in Europe, Tesla's plan to introduce a budget-friendly SUV could be a crucial factor in maintaining its competitive edge and solidifying its leadership position in the electric vehicle industry.
See More
Tesla's Outlook for the Next Three Years
- Valuation Risk Analysis: Tesla's current valuation, with a stock price around $352, shows a wide range of analyst earnings per share estimates from $1.81 to $11.29, with a mean of $4.81, indicating high uncertainty in future profitability that could lead to stock price volatility.
- Robotaxi Potential: CEO Elon Musk views robotaxis not merely as an adjunct to Tesla's EV business but as the inevitable future of the automotive market; if the Cybercab is successfully launched, it is expected to be used 50 to 60 hours a week, significantly enhancing profitability.
- Cost Advantage and Market Revolution: Achieving a $0.20-per-mile cost basis for the Cybercab, combined with its efficient full self-driving hardware and software, could revolutionize the automotive market, prompting investors to pay a premium for Tesla's stock, reflecting optimism about its long-term growth.
- Regulatory and Market Acceptance: The success of Tesla's unsupervised robotaxi service in gaining widespread approval will directly impact its future stock price; despite currently limited service in Austin, Texas, successful expansion could lead to significant stock price increases.
See More
Tesla's Outlook for the Next Three Years
- Robotaxi Prospects: Tesla CEO Elon Musk envisions autonomous driving and robotaxis as the future of the automotive market, with expectations that the Cybercab will be utilized 50 to 60 hours per week, significantly enhancing revenue potential.
- Earnings Expectation Variance: Wall Street estimates for Tesla's earnings per share over the next three years show a wide range, with a high of $11.29 and a low of $1.81, indicating high uncertainty regarding the company's future performance.
- Valuation Challenges: Despite Tesla's stock price being around $352, even the highest earnings estimate results in a price-to-earnings ratio of 31, reflecting market caution regarding its future growth.
- Regulatory Risks and Opportunities: The limited operation of Tesla's robotaxi service in Austin, Texas, will impact its future stock price; however, despite regulatory risks, the market remains optimistic about potential price increases.
See More
Goldman Sachs Bullish on Pony.ai and WeRide
- Goldman Ratings: Goldman Sachs initiated coverage on Pony.ai and WeRide with Buy ratings, highlighting their edge in autonomous driving technology and rapid commercialization in China and overseas, which is expected to drive future revenue growth for both companies.
- Price Targets Set: Goldman set a target price of HK$54.23 for WeRide and HK$234 for Pony.ai, despite both stocks showing weakness in the Hong Kong market, with WeRide down about 3% and Pony.ai down 4% at the time of reporting.
- Revenue Growth Forecast: Goldman predicts WeRide's revenue will grow at an 80% CAGR from 2025 to 2030, primarily driven by the expansion of its global robotaxi services, with its fleet expected to increase from 2,800 vehicles in 2026 to 415,000 by 2032.
- Market Competition Pressure: Despite Goldman’s bullish outlook, retail sentiment on Stocktwits remains cautious, with Pony.ai showing a bearish sentiment and WeRide a neutral stance, reflecting the complex market perceptions surrounding China's autonomous driving sector.
See More
Tesla Stock Plummets 20% Amid EV Sales Struggles
- Weak EV Sales: Tesla delivered 1.79 million EVs in 2024, down 1%, and further declined by 9% to 1.63 million in 2025, with the EV business accounting for over 70% of total revenue, severely impacting financial performance due to sluggish sales.
- Profitability Decline: The automotive revenue fell by 10% in 2025, dragging total revenue down by 3%, while earnings per share crashed by 47% due to price cuts aimed at attracting customers, highlighting profitability pressures amid fierce competition.
- Future Product Outlook: Tesla delivered 358,023 EVs in Q1 2026, below Wall Street's estimate of 370,000, yet representing a 6% year-over-year increase, which could bolster investor confidence if the upcoming earnings report confirms revenue growth.
- Autonomous Vehicles and Robotics Plans: Musk anticipates starting production of the Optimus humanoid robot by late 2026, with a potential market value of $10 trillion, but the timeline for achieving significant production scale remains unclear, necessitating close monitoring of future updates.
See More
