Tesla stock delivers in-line Q2 results as Oppenheimer maintains Perform rating
Investing.com
Published Jul 02, 2025 10:14AM ET
Investing.com - Tesla (NASDAQ:TSLA) received a reiterated Perform rating from Oppenheimer following the electric vehicle maker's second-quarter 2025 delivery report, which met analyst expectations. According to InvestingPro data, Tesla maintains a strong financial position with a healthy current ratio of 2.0 and more cash than debt on its balance sheet.
Oppenheimer noted that Tesla's Model 3 and Model Y deliveries outperformed expectations, with U.S. factories likely producing approximately 165,000 vehicles during the quarter. The firm attributed this relatively strong sell-through to the refreshed Model Y. With trailing twelve-month revenue reaching $95.72 billion, Tesla continues to demonstrate its position as a prominent player in the automotive industry, though InvestingPro analysis indicates the stock is trading above its Fair Value.
The investment firm anticipates higher Model 3 and Model Y sales will support margins, helping to offset disappointing sales figures for the Model S, Model X, and Cybertruck. Oppenheimer expects investors to quickly shift their focus to Full Self-Driving (FSD) performance and Tesla's ability to maintain both margins and free cash flow. Current gross profit margins stand at 17.66%, while the stock trades at a P/E ratio of 157.88, reflecting high growth expectations.
Oppenheimer predicts Tesla stock will rally and maintain gains leading up to the company's second-quarter 2025 financial results, which are expected later this month. The firm believes bullish investors will point to improving sales in China as an indicator of increasing global demand.
The research note also mentioned that bears will likely continue to highlight Tesla's relative market share losses, question the company's technology leadership, and point to recent leadership changes as signs of potential challenges ahead.
In other recent news, Tesla reported a slight increase in its China-made electric vehicle sales for June, with a 0.8% rise compared to the previous year, reaching 71,599 units, according to the China Passenger Car Association. This marks the end of an eight-month streak of declining sales for Tesla in China. The company's Model 3 and Model Y vehicles manufactured at its Shanghai factory saw a 16.1% increase in deliveries compared to May. In Spain, Tesla experienced a surge in new car sales, with registrations rising 60.7% in June compared to the same month in 2023, although sales for the first half of 2024 were down slightly by 0.9%. In Norway, Tesla led new car registrations in the first half of 2023, capturing a 17.3% market share, with the Model Y emerging as the most registered car model. Additionally, Tesla's CEO Elon Musk's artificial intelligence startup, xAI Corp., added Barclays, Mitsubishi UFJ (NYSE:MUFG) Financial Group, and UBS Group to its recent $5 billion debt deal, joining Morgan Stanley in the financing arrangement. Meanwhile, U.S. President Donald Trump commented on Musk's potential losses related to the electric vehicle mandate in the recent tax and spending bill, suggesting further scrutiny of subsidies received by Musk's companies.
Get The News You Want
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.