Tesla (TSLA, Financials) is set to report its second-quarter results after the market closes Wednesday, just as JPMorgan issued a cautiously optimistic note about its new robotaxi business.
Analysts from JPMorgan rode the autonomous vehicle in Austin and described it as “solid” and consistently safe — a rare endorsement from a firm that has maintained a long-standing bearish view on the stock.
Tesla launched the ride-hailing service on June 22 and has already grown its geofenced coverage to 42 square miles in Austin, although Alphabet's Waymo has expanded faster in the same city.
Despite the positive test ride, JPMorgan reiterated a Sell rating and a $115 price target on July 7, implying 65% downside from current levels. The firm cited Tesla's valuation as unjustified when compared to peers in the so-called Magnificent Seven.
Wall Street expects Tesla to post Q2 adjusted earnings per share of $0.40 on revenue of $22.19 billion. Analysts are especially focused on any updates regarding full-self driving progress and the robotaxi rollout.
Investors are also watching how the Trump administration's plan to end EV tax credits could affect Tesla's margins in the upcoming quarters.
