July 18 – Tesla (NASDAQ:TSLA) could defy weaker fundamentals and outperform after its second?quarter results, according to a research note from Barclays.
Barclays described the post?earnings setup as confusing but highlighted Tesla’s long?term robotaxi ambitions as a potential catalyst, noting the upcoming conference call may give Elon Musk a chance to outline fleet growth targets and expansion plans.
The bank expects a slight sequential uptick in automotive gross margin excluding regulatory credits but warned that margins will likely remain depressed versus prior years. Vehicle deliveries are projected to fall about 10 percent in 2025, with consensus EPS estimates having declined from more than $3.20 at the start of the year to around $1.84, reflecting a soft first half.
Barclays also questioned the likely deferral of a low?cost model beyond the expiry on Sept. 30 of the U.S. electric vehicle tax rebate, and said the company might count on a pre-buy stimulus in the third quarter rather than a new car launch, a factor that could come out ill.
As Tesla continues to heat up with controversy surrounding the active development of a robot taxi, or autonomous vehicle, over its current level of achievement, Barclays asserts that the pressure in the short term might be dwarfed by Tesla telling its autonomous-vehicle story.
This article first appeared on GuruFocus.