Tesla (NASDAQ: TSLA) heads into its second-quarter earnings report this Wednesday, July 22, carrying two stories that can't both be right. The electric-car maker just delivered 480,126 vehicles in Q2, up 25% year over year and its highest quarterly total since the third quarter of 2025. Yet the stock sits at about $391 as of this writing, down 22% from its 52-week high of $498.83.
And one Wall Street firm thinks the decline is just getting started. Last week, Wells Fargo raised its Tesla price target to $130 from $125 while keeping its underweight rating. From today's price, that target implies a drop of about 67%.
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The firm's reasoning, in essence, is that Tesla is selling more cars than it has in any quarter since the third quarter of 2025 but earning less on each one, with price cuts and rising input costs (memory chips, copper, and lithium among them) eating away the gains.
The strongest evidence for the bulls is volume. Tesla's 480,126 second-quarter deliveries were up 25% from the 384,122 vehicles it delivered in the year-ago quarter.
Delivery growth is also accelerating, up from a 6% year-over-year increase in the first quarter. After a long stretch of shrinking vehicle sales, growth is back.
The rest of the business is moving again, too. First-quarter revenue rose 16% year over year to $22.4 billion, with services and other revenue climbing 42%.
And after a soft first quarter in which energy revenue fell 12% year over year, energy storage deployments rebounded to 13.5 gigawatt-hours in Q2, up 41% from the year-ago period and up sharply from 8.8 gigawatt-hours in Q1.
Even the businesses investors are really paying up for are progressing. Tesla launched unsupervised robotaxi rides in Dallas and Houston in April, and it received approval for Full Self-Driving (Supervised) in the Netherlands the same month. Its active Full Self-Driving (Supervised) subscriptions reached 1.28 million in the first quarter, up 51% year over year.
And the company has the resources to keep funding its ambitions in autonomy and robotics. Tesla ended Q1 with $44.7 billion in cash, cash equivalents, and short-term investments, up from $44.1 billion at the end of 2025.
That's an improving picture, and I don't think the bears can dismiss it.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
