Tesla: Expect Q2 Fundamentals To Be A Disaster
Summary
- Tesla, Inc.'s core automotive business is deteriorating, with Q1 2025 results showing declining deliveries, revenues, and margins, and Q2 shaping up even weaker.
- The current stock price is disconnected from fundamentals, driven by speculative enthusiasm for robotaxi potential, which contributes nothing meaningful to earnings today.
- Loss of US EV tax credits and regulatory credit headwinds threaten billions in future profits, making consensus growth projections for 2026 unrealistic.
- TSLA stock's valuation is far ahead of reasonable forecasts; even with optimistic assumptions, shares are overvalued by up to 100%. I maintain a Sell rating.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Not financial advice
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