Tesla's earnings report sparks intense debate between bulls and bears: Bulls bet on the trillion-dollar dream of FSD, while bears focus on slowing deliveries and the realization of the vision

According to Zhitong Finance APP, Tesla (TSLA.US) became the market focus on Thursday, as its second-quarter financial report showed a slowdown in revenue and delivery growth. The company once again promised to launch "more affordable" electric vehicle models and emphasized its leading position in the field of autonomous driving. Analysts have differing opinions.

Wedbush Securities analyst Dan Ives believes that the next few quarters are crucial for Tesla's autonomous driving business: the company's goal is to have its autonomous ride-hailing service cover half of the U.S. population by the end of 2025, including the launch of unsupervised Full Self-Driving (FSD) features for individual users in some U.S. cities before the end of 2025.

He also mentioned that Elon Musk hinted that Tesla's FSD technology is expected to receive regulatory approval in the Netherlands, which will pave the way for compliant promotion of FSD across the EU in the coming years.

Wedbush maintains an "Outperform" rating on Tesla with a target price of $500, reasoning that the potential value of the autonomous driving business alone is as high as $1 trillion.

Wells Fargo reiterated its "Underweight" rating on Tesla. Analyst Colin Langan and his team are cautious about the scaling of the robotaxi and Optimus humanoid robot businesses, believing that their rollout may take longer than expected, while the weakness in the core business will exacerbate risks.

Langan pointed out that Tesla did not provide new delivery guidance and warned that tariff pressures, the cancellation of electric vehicle tax credits, and the impact of the Big Beautiful Bill could further pressure performance.

Morgan Stanley analyst Adam Jonas stated that Tesla is crossing the chasm towards transforming into autonomous driving while also facing slowing sales growth, the cancellation of electric vehicle incentive policies, tariff impacts, and investments in new projects that may not be profitable for years.

"Given that the company has clearly outlined the headwinds it will face in the coming quarters, we believe market consensus expectations may be revised downward. We are lowering our 2025 earnings per share expectations by 14% and 2026 by 7%, primarily due to lowered delivery expectations and increased operating expenses."

Hargreaves Lansdown analyst Matt Britzman stated, "Tesla is one of the few companies with significant growth potential, and at least for now, investors are willing to tolerate the weakness in its core financial metrics.

Last night's earnings report comments confirmed market concerns about tariffs, rising costs, pressured profit margins, and tight cash flow. However, when these factors have become baseline expectations, AI-related narratives may once again dominate market sentiment."

Seeking Alpha analyst Jonathan Weber holds a "Sell" rating on Tesla, stating, "Although Tesla has potential in the humanoid robot and robotaxi fields, when and even if these businesses can be profitable remains uncertain. At least in the past, Tesla has repeatedly failed to achieve its ambitious goals.

Meanwhile, the obstacles and issues currently facing the company are very clear: declining profit margins, shrinking revenue, deteriorating profits (especially cash flow), and the additional impact of the Big Beautiful Bill may become evident in the coming quarters As of the time of publication, Tesla is down 6.75% in pre-market trading, at $310.12