We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Energy storage deployments rose to 9.6 GWh, with Tesla forecasting at least 50% growth for 2025.
Tesla launched robotaxi services in Austin but faces stiff competition and regulatory challenges.
Electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) released its second-quarter 2025 production and delivery numbers yesterday. It produced 410,244 vehicles, down on a yearly basis. Deliveries totaled 384,122 units (373,728 Model 3/Y and 10,394 Other Models), down 13.4% year over year. The deliveries also fell short of Wall Street’s consensus mark of 390,000 units. Despite the miss, shares of Tesla were up roughly 5%, closing the session at $315.65 yesterday.
Tesla's EV business is under pressure. In the first quarter of 2025, Tesla attributed weak deliveries to production disruption associated with the Model Y changeover. However, this doesn’t hold true for the second quarter as the new Model Y has been ramped up across factories. In fact, Tesla is producing more and building up inventories, which clearly indicates a demand problem.
And this demand problem is not industry-wide. While Tesla’s sales declined, General Motors’ (GM - Free Report) EV sales more than doubled in the second quarter to 46,280 units. China’s EV behemoth BYD Co Ltd (BYDDY - Free Report) sold 606,993 units, which increased 42.5% year over year.
Clearly, Tesla’s brand image is not the same as before. The company’s aging model lineup and CEO Elon Musk’s increasingly polarizing image have been hurting the company’s sales amid cut-throat competition.
Energy Storage and Charging Remain Bright Spots for TSLA
Amid falling EV demand, Tesla’s energy and storage business is thriving, thanks to the strong reception of its Megapack and Powerwall products. Last year, deployments soared 113% year over year, driven largely by the expansion efforts at the Mega factory in Lathrop, CA. In the second quarter of 2025, Tesla deployed 9.6 GWh of energy storage, up from 9.4 GWh in the year-ago quarter. The company expects deployments in 2025 to increase another 50% at least. Notably, this segment carries the highest margins across Tesla’s business lines. However, being a small contributor to overall revenues, its strength isn't enough to offset the ongoing weakness in the EV segment.
Tesla’s Supercharger network has also become a critical component of the company’s ecosystem. The rollout of the North American Charging Standard has bolstered Tesla’s position, allowing various automakers to access its charging network.Worldwide, Tesla has more than 70,000 Superchargers, making it the largest EV charging network globally.
TSLA Investors Pinning Hopes on Robotaxi?
Tesla is banking on self-driving technology to drive its next wave of growth. The company recently launched robotaxi services in Austin and completed a fully autonomous Model Y delivery, with no driver and no remote guidance. Musk envisions robotaxis as a game-changing revenue stream amid rising EV competition.
But despite the bold push, Tesla trails leaders like Waymo in the autonomous vehicle race. As with many of Tesla’s ambitious promises, investors should temper expectations. Regulatory hurdles, safety concerns and the technical complexity of full autonomy remain significant obstacles that could delay large-scale deployment and profitability.
Tesla’s Price Performance & Valuation
Year to date, shares of Tesla have declined 22%, handily underperforming peers like General Motors and BYD. While General Motors’ shares lost a modest 1%, BYD gained more than 37% during the same timeframe.
YTD Price Performance Comparison
Image Source: Zacks Investment Research
Tesla's valuation remains stretched. Going by its price/sales ratio, the company is trading at a forward sales multiple of 9.64, way higher than General Motors and BYD.
TSLA's P/S Vs. BYDDY & GM
Image Source: Zacks Investment Research
This premium is difficult to justify based on fundamentals. The market seems to be pricing in major breakthroughs in high-risk frontiers like autonomous driving and humanoid robotics—bets that are far from guaranteed to pay off.
Zacks Estimates for TSLA
The Zacks Consensus Estimate for Tesla’s 2025 sales and earnings implies a year-over-year decline of 2% and 22%, respectively. The EPS estimate for Tesla has been trending southbound over the past 90 days.
Image Source: Zacks Investment Research
How to Play Tesla Now
Tesla has been a big winner over the past decade, but its recent performance tells a different story. Delivery shortfalls, margin pressure, and increasing competition are taking a toll. Add to that Musk’s controversies with U.S. President Trump, and it's no surprise that investor sentiment is wavering.
Downward revisions in earnings estimates and growing volatility paint a challenging near-term outlook. While Tesla still has long-term potential, particularly in areas like energy and autonomy, the risks currently outweigh the rewards.
Until Tesla shows real progress on both the tech and execution front, investors may be better off staying on the sidelines—or even locking in any profits if they haven’t already.
Tesla currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Tesla Q2 Deliveries Weak But Shares Rise: What's Next for Investors?
Key Takeaways
Electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) released its second-quarter 2025 production and delivery numbers yesterday. It produced 410,244 vehicles, down on a yearly basis. Deliveries totaled 384,122 units (373,728 Model 3/Y and 10,394 Other Models), down 13.4% year over year. The deliveries also fell short of Wall Street’s consensus mark of 390,000 units. Despite the miss, shares of Tesla were up roughly 5%, closing the session at $315.65 yesterday.
Tesla's EV business is under pressure. In the first quarter of 2025, Tesla attributed weak deliveries to production disruption associated with the Model Y changeover. However, this doesn’t hold true for the second quarter as the new Model Y has been ramped up across factories. In fact, Tesla is producing more and building up inventories, which clearly indicates a demand problem.
And this demand problem is not industry-wide. While Tesla’s sales declined, General Motors’ (GM - Free Report) EV sales more than doubled in the second quarter to 46,280 units. China’s EV behemoth BYD Co Ltd (BYDDY - Free Report) sold 606,993 units, which increased 42.5% year over year.
Clearly, Tesla’s brand image is not the same as before. The company’s aging model lineup and CEO Elon Musk’s increasingly polarizing image have been hurting the company’s sales amid cut-throat competition.
Energy Storage and Charging Remain Bright Spots for TSLA
Amid falling EV demand, Tesla’s energy and storage business is thriving, thanks to the strong reception of its Megapack and Powerwall products. Last year, deployments soared 113% year over year, driven largely by the expansion efforts at the Mega factory in Lathrop, CA. In the second quarter of 2025, Tesla deployed 9.6 GWh of energy storage, up from 9.4 GWh in the year-ago quarter. The company expects deployments in 2025 to increase another 50% at least. Notably, this segment carries the highest margins across Tesla’s business lines. However, being a small contributor to overall revenues, its strength isn't enough to offset the ongoing weakness in the EV segment.
Tesla’s Supercharger network has also become a critical component of the company’s ecosystem. The rollout of the North American Charging Standard has bolstered Tesla’s position, allowing various automakers to access its charging network.Worldwide, Tesla has more than 70,000 Superchargers, making it the largest EV charging network globally.
TSLA Investors Pinning Hopes on Robotaxi?
Tesla is banking on self-driving technology to drive its next wave of growth. The company recently launched robotaxi services in Austin and completed a fully autonomous Model Y delivery, with no driver and no remote guidance. Musk envisions robotaxis as a game-changing revenue stream amid rising EV competition.
But despite the bold push, Tesla trails leaders like Waymo in the autonomous vehicle race. As with many of Tesla’s ambitious promises, investors should temper expectations. Regulatory hurdles, safety concerns and the technical complexity of full autonomy remain significant obstacles that could delay large-scale deployment and profitability.
Tesla’s Price Performance & Valuation
Year to date, shares of Tesla have declined 22%, handily underperforming peers like General Motors and BYD. While General Motors’ shares lost a modest 1%, BYD gained more than 37% during the same timeframe.
YTD Price Performance Comparison
Tesla's valuation remains stretched. Going by its price/sales ratio, the company is trading at a forward sales multiple of 9.64, way higher than General Motors and BYD.
TSLA's P/S Vs. BYDDY & GM
This premium is difficult to justify based on fundamentals. The market seems to be pricing in major breakthroughs in high-risk frontiers like autonomous driving and humanoid robotics—bets that are far from guaranteed to pay off.
Zacks Estimates for TSLA
The Zacks Consensus Estimate for Tesla’s 2025 sales and earnings implies a year-over-year decline of 2% and 22%, respectively. The EPS estimate for Tesla has been trending southbound over the past 90 days.
How to Play Tesla Now
Tesla has been a big winner over the past decade, but its recent performance tells a different story. Delivery shortfalls, margin pressure, and increasing competition are taking a toll. Add to that Musk’s controversies with U.S. President Trump, and it's no surprise that investor sentiment is wavering.
Downward revisions in earnings estimates and growing volatility paint a challenging near-term outlook. While Tesla still has long-term potential, particularly in areas like energy and autonomy, the risks currently outweigh the rewards.
Until Tesla shows real progress on both the tech and execution front, investors may be better off staying on the sidelines—or even locking in any profits if they haven’t already.
Tesla currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here