Tesla (TSLA) CEO Elon Musk, whom JPMorgan CEO Jamie Dimon once called "our Einstein", has had plenty on his plate lately.
SpaceX's (SPCX) latest Starship launch was aborted, sending the stock tumbling below its IPO price to $123.99 on Friday, 45% below its post-listing peak, according to Barrons.
But the stock market's giving Musk little time to cry a river, with attention already shifting to Tesla's looming second-quarter earnings report on July 22, 2026.
In a surprising turn of events, though, Tesla is entering earnings with stronger deliveries, an expanding robotaxi footprint, and expectations around Optimus and energy storage.
However, the headline figures might not be what matters most.
In a note shared with me, Bank of America analysts suggest the important change is developing beyond the obvious earnings figures, raising the stakes for Tesla's outlook.
The big question is whether Tesla can turn those promises into numbers that investors can finally underwrite after multiple forgettable quarterly reports of late.
Bank of America just bumped its Tesla forecasts across 2026 through 2028 following the EV behemoth's stronger-than-expected delivery performance.
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The bank also reiterated its Buy rating and $460 price target, implying nearly 17.6% upside from Tesla's July 17 close of $391.06.
BofA lifted its 2026 revenue estimate to $107.8 billion from $103.4 billion, raised its 2027 estimate to $126.2 billion from $120.4 billion, and raised its 2028 estimate to $144 billion from $137.2 billion. EPS estimates jumped to $2.13, $2.71, and $3.39, respectively, representing increases of nearly 7%, 4% and 4%.
Clearly, BofA feels much more confident in Tesla's near-term recovery as deliveries improve and robotaxi deployment expands.
Its quarterly model also points to acceleration, with adjusted EPS reaching $0.51 in Q2, $0.54 in Q3, and $0.68 in Q4.
The central thesis is that Tesla is entering the early monetization phase for robotaxis, FSD, Optimus, and energy storage.
BofA analysts identified Robotaxis as the primary catalyst that is spearheading Tesla's bull case.
For perspective, Tesla currently has robotaxi operations in five core markets following its July 3 launch in Miami, with four additional markets reportedly in preparation.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
