Evaluating TSLA Stock: Buy, Sell, or Hold? Essential Insights Before Q2 Earnings

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Tesla (TSLA) is set to release its second-quarter 2025 results on July 23 after market close. The Zacks Consensus Estimate for earnings is expected to be 40 cents per share on revenues of $22.61 billion, representing a 23% year-over-year decline in earnings and an 11.3% decrease in revenue.

Tesla reported 384,122 vehicle deliveries globally for the quarter, marking a 13.5% decline year-over-year, the sharpest drop in its history. This figure fell short of the estimated 420,079 units. The company’s automotive revenues are expected to drop more than 6% for the quarter, with automotive gross margins estimated to shrink to 15%.

Year-to-date, TSLA shares have decreased by more than 23%, underperforming its industry. Tesla’s revenue for 2025 is projected at $94.5 billion, a 3.3% decline compared to the previous year. Increased competition from companies like General Motors and BYD, coupled with production costs and demand slowdown, poses challenges for Tesla’s near-term outlook.

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