Tesla investors might get a break from excessive volatility for the next few days.
That’s a relief. But it’s only the calm before the storm.
Shares of the electric-vehicle maker were up 1.1% in early trading at $400.38, while the S&P 500 and Dow Jones Industrial Average both rose about 0.4%.
That’s a relatively modest move for Tesla stock and comes after shares gained 0.4% on Tuesday. Investors will probably welcome the tame trading. Tesla shares have moved more than 3%, up or down, six of the past 11 trading days. Shares were boosted by strong second-quarter deliveries and expansion of the company’s robo-taxi business into Miami. But none of the gains lasted.
Now, investors appear to be waiting for July 22, when Tesla will report second-quarter numbers after the close. Wall Street is looking for earnings per share of 55 cents, up from 40 cents a year ago.
Deutsche Bank analyst Edison Yu still sees profit margin pressure, despite selling more cars. Promotional interest rates are one reason he cited. Prices for copper, lithium, and memory chips are also up.
He projects earnings per share of 36 cents, below the consensus call. Still, Yu rates Tesla shares Buy and has a $465 price target.
Bottom-line results just don’t matter as much right now. AI does. Tesla is spending some $25 billion in 2026 to build out its AI-trained robo-taxi business and prepare to make AI-trained humanoid robots. Progress on the AI front will likely matter more than how the EV business is doing.
Still, a strong EV franchise doesn’t hurt. It generates most of the profits and cash that Tesla is reinvesting into an AI future.
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