With Q2 Earnings In The Rearview Mirror, Tesla's AI Future Comes Into Focus
Tesla Inc shares are slightly down as investors assess the company's AI ambitions amid financial challenges. Tesla confirmed a $16.5 billion deal with Samsung for the AI6 chip, expected to enhance autonomous capabilities. Despite a Q2 earnings miss, with revenues down 12% year-over-year, Tesla plans affordable models by 2025. Analyst ratings vary, with RBC maintaining an Outperform rating and raising the price target to $325, while Morgan Stanley predicts a $200 billion self-driving market by 2030. Tesla shares are trading at $321.20, down 1.35%.
Tesla Inc TSLA shares are trading marginally lower Tuesday afternoon as investors continue to weigh the company’s long-term artificial intelligence ambitions against recent financial headwinds. Here’s what investors need to know.
What To Know: On Monday, Tesla confirmed a landmark $16.5 billion multiyear deal with Samsung Electronics to produce its next-generation AI6 chip in Texas. Analysts called the partnership a “valuable opportunity” for Tesla to gain hands-on foundry experience, something competitor TSMC would not have permitted.
Samsung currently builds Tesla’s AI4 chip, with TSMC tapped for the upcoming AI5. The AI6 chip is expected to “unlock a far more advanced autonomous capability” for Tesla’s future products, including Robotaxi and the Optimus bot.
This strategic move follows Tesla's second-quarter earnings report, which missed Wall Street estimates on revenue and earnings. The company posted revenues of $22.5 billion, down 12% year-over-year, which it attributed 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 have been varied. RBC Capital maintained an Outperform rating on Tuesday, 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.
This contrasts with a downgrade from China Renaissance to Hold on July 25. Looking at the broader market, Morgan Stanley has predicted the self-driving industry could become a $200 billion market by 2030.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which provide four critical scores to help investors assess stocks, Tesla exhibits a distinct profile. The company posts strong scores for Quality at 71.58 and Momentum at 66.66, along with a solid Growth score of 63.62.
These metrics suggest the company has robust financial health, positive price trends and good growth potential. In sharp contrast, TSLA receives a very low score for Value at just 10.15, indicating the stock is considered expensive compared to its underlying financial fundamentals.
TSLA Price Action: According to data from Benzinga Pro, Tesla shares are trading lower by 1.35% to $321.20 at market close Tuesday. The stock has a 52-week high of $488.54 and a 52-week low of $182.
