Tesla Inc shares are trading marginally lower as investors weigh the company’s long-term artificial intelligence ambitions against recent financial headwinds. Here’s what you need to know:
Key Points to Consider
- Tesla has confirmed a landmark $16.5 billion multiyear deal with Samsung Electronics to produce its next-generation AI6 chip in Texas.
- Analysts view the partnership as a valuable opportunity for Tesla to gain hands-on foundry experience, something competitor TSMC would not have permitted.
- The AI6 chip is expected to unlock a far more advanced autonomous capability for Tesla’s future products, including Robotaxi and the Optimus bot.
Q2 Earnings Report
Tesla’s second-quarter earnings report missed Wall Street estimates on revenue and earnings. The company posted revenues of $22.5 billion, down 12% year-over-year, due to lower delivery volumes and pricing pressure. However, Tesla reaffirmed that its new, more affordable models are still planned for the second half of 2025.
Analyst Ratings
Analyst ratings have been varied, with RBC Capital maintaining an Outperform rating and raising its price target to $325. The firm’s valuation model points to significant upside from non-automotive segments such as robotaxis and humanoid robots. In contrast, China Renaissance downgraded Tesla to Hold.
Market Predictions
Morgan Stanley has predicted that the self-driving industry could become a $200 billion market by 2030.
Stock Performance
According to stock rankings, Tesla exhibits a distinct profile, with strong scores for Quality, Momentum, and Growth. However, the company receives a low score for Value, indicating that the stock is considered expensive compared to its underlying financial fundamentals.
Current Stock Price
Tesla shares are trading lower by 1.35% to $321.20, with a 52-week high of $488.54 and a 52-week low of $182.
How to Buy TSLA Stock
To participate in the market for Tesla, you can buy shares through a brokerage account. Many platforms allow you to buy “fractional shares,” which enables you to own portions of stock without buying an entire share. Alternatively, if you’re looking to bet against the company, you can access an options trading platform or a broker who will allow you to “go short” a share of stock.
Buying and Selling Options
If your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading. This enables you to profit from the share price decline. However, the process of shorting a stock can be complex and may require access to an options trading platform or a broker who will allow you to “go short” a share of stock.