Investment banks mostly maintained their current assessments of Tesla shares after the quarterly report. Those who recommended to sell the shares saw no new reasons for optimism, while those who advised to buy securities keep faith in the company and wait for news on the robotaxi project and the release of robots Optimus. Tesla shares plunged 9.5 percent in trading on July 24 after the company the night before reported its worst revenue decline in 10 years and its CEO Elon Musk urged investors to prepare for several "tough quarters."

How the report was responded to on Wall Street

- The chief optimist on Tesla, Wedbush analyst Dan Ives maintains a "buy" recommendation on the electric-car maker's shares and the highest Wall Street target of $500 -- that's 65% above current quotes. "I don't look at Tesla as just a car company and I don't get hung up on short-term supply or tax credits for electric cars. This is a story about autonomous technology and robots. The AI revolution is just beginning," the analyst said on Bloomberg.

According to him, robotaxis and autonomous driving alone could lead Tesla to a $1 trillion capitalization. Ives notes that if the company launches robotaxis in 25 cities within a year and starts producing Optimus humanoid robots, "90% of Tesla's future value will be concentrated in AI, not in the supply of cars." That said, the analyst agrees that the conference call after the report, at which Musk said there are still several "tough quarters ahead," "won't go down in history as the best."

"Of course, the conference call itself can be criticized - [there were] a lot of promises. But in my opinion, if at least 20-30% of what he [Musk] promised is realized, the stock will rise 70-80% from current levels," Ives said.

The analyst notes that in order to overcome the crisis, Ilon Musk, who left the civil service, must now focus on work in Tesla, because "the main asset of Tesla is Musk."

- Analyst Mark Delaney of Goldman Sachs raised his target price on Tesla shares to $300 from $285, maintaining a neutral rating. He expects Tesla's revenue and earnings growth to improve in 2026, but maintains forecasts for 2025-2027 below the FactSet consensus.

"Going forward, we believe the key for investors will be Tesla's ability to accelerate revenue and earnings growth through AI-powered products such as robotaxis and autonomous driving (FSD), as well as new models amid tighter policies and increased competition," Delaney wrote in a note thatis cited by CNBC.

The analyst also noted that the end of incentive subsidies for electric vehicles in the fourth quarter may put short-term pressure on sales, but the shift to AI products including robotaxis, FSD and Optimus will be a major driver in the long term.

 - Analyst Colin Langan at Wells Fargo maintained an "underperform" rating and a $120 target price, 60 percent below the current price target. "Shares fall after report despite operating margin above expectations - fundamentals deteriorate in the second half of the year. Tesla gave no new information on deliveries and warned of additional pressure due to rising duties, a new tax law and the elimination of subsidies for electric vehicle purchases," Langan wrote.

He remains cautious about robotaxis despite Musk's optimism, saying the service will "probably reach half of the U.S. population" by the end of the year and promising to unveil an Optimus 3 prototype by that deadline as well. According to Langan, scaling Optimus robotaxis and humanoids may take longer than expected, increasing risks amid a weakening core business, CNBC writes.

- Morgan Stanley analyst Adam Jonas, known for his bullish view on Tesla, reiterated an "above market" recommendation and kept his target price at $410. However, he lowered his 2025 EPS growth forecast by 14%, citing lower deliveries and rising operating costs.

"The second-quarter report slightly beat expectations, with free cash flow close to zero. Tesla is transitioning to autonomous driving while facing falling volumes, the elimination of subsidies for electric car purchases, duties and investments in long-term projects that will not yield profitability in the coming years," Jonas wrote." wrote Jonas. -  We find it difficult to name another company with the same potential in data, robotics, AI, manufacturing and infrastructure."

- Analyst Federico Merendi of Bank of America maintained a neutral rating on Tesla shares and a $341 target price. He expects "challenging quarters ahead," agreeing with Musk's outlook. "Tesla remains optimistic about the development of its AI businesses: autonomous vehicles, robotaxis and Optimus. That said, the company faces significant challenges," Merendi wrote.

He also noted that the impact of duties may increase, but by the end of 2026, Tesla's economic model may look more compelling with a large-scale rollout of autonomous driving.

-  Evercore ISI analyst Chris McNally maintained a Neutral rating on Tesla shares with a $235 price target. He expects the company's third-quarter report to reflect the impact of slow new model launches and duty pressures. "The long-term trend of downward earnings outlook revisions continues," he said. - We believe the consensus will correct sharply after the third-quarter report."

- Baird analyst Ben Kallo gave Tesla shares a "hold" rating and set a target price at the current $320. "Robotaxis remain in the spotlight, but for now there remains uncertainty in this area," the analyst wrote ahead of the report in a note that is cited by Barron's. - We're not sure Tesla will be able to realize its vision in the timeframe announced, keep costs within target levels, and scale the project at the right volumes."

This article was AI-translated and verified by a human editor

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