Austin, Texas-based Tesla, Inc. (TSLA) is a global electric vehicle (EV) and clean energy company that designs, manufactures, and sells battery-electric vehicles, energy storage systems, solar products, and related software and services. Valued at an impressive market cap of $1.2 trillion, the company operates through two primary segments: Automotive and Energy Generation and Storage.
This automobile giant has outperformed the broader market over the past 52 weeks. Shares of Tesla have declined 2.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16%. Moreover, on a YTD basis, the stock is down 31.2%, compared to SPX’s 8.3% rise.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Narrowing the focus, TSLA has trailed the KraneShares Electric Vehicles and Future Mobility Index ETF (KARS), which soared 14.9% over the past 52 weeks and dipped 4.6% on a YTD basis.
www.barchart.com On Jul. 22, Tesla released its fiscal 2026 second quarter earnings, and its shares dipped 14.5% in the next trading session. The EV maker reported record revenue of $28.23 billion, up 25.5% year over year, driven by record deliveries of 480,126 vehicles, a growing order backlog, and continued strength in its Services business.
However, its shares plunged as investors focused on deteriorating profitability, with operating income falling 56.9% to $398 million due to higher AI-related investments and rising operating expenses. Its non-GAAP EPS fell 17.5% year over year to $0.33. The company also posted negative free cash flow of $1.1 billion, its first negative reading in more than two years, after capital expenditures surged 141.8% to a record $5.8 billion to support investments in AI infrastructure, Robotaxi, and Optimus.
For the current fiscal year, ending in December, analysts expect TSLA’s EPS to drop 17.4% year over year to $0.90. The company’s earnings surprise history is disappointing. It fell short of the consensus estimates in each of the last four quarters.
Among the 42 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 15 “Strong Buy,” two “Moderate Buy,” 20 “Hold,” and five "Strong Sell” ratings.
www.barchart.com On Jul. 7, RBC Capital analyst Tom Narayan reiterated an "Outperform" rating on Tesla and raised his price target to $500 from $475, citing continued confidence in the EV maker's long-term prospects.
The mean price target of $405.40 indicates a 31.1% potential upside from the current levels, while its Street-high price target of $600 suggests an ambitious 94% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Honeywell Aerospace, Just Spun Off, Posted High Q2 FCF Margins; Value Investors Love HONA Stock Ahead of Meta Earnings, Here's What Barchart Data Says Comes Next for META Stock Broadcom Leads 3 AI Stocks Quietly Raising Their Dividends, One by 161% Amazon Might Be Outspending Alphabet on AI, But It Doesn’t Makes AMZN Stock a Sell