Key Stats for Tesla Stock
- Price change for Tesla stock in Last 1 Month: -25%
- $TSLA Stock Price as of Jul. 27: $309
- 52-Week High: $499
- $TSLA Stock Price Target: $401
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What Happened?
Tesla (TSLA) stock just had its worst week since 2022. Shares fell 17% for the week and dropped as much as 16% over two days following last week’s Q2 earnings report. The single-session decline after earnings hit 14%, pushing Tesla stock down to an 11-month low.
Deutsche Bank added to the pressure on Monday. Analyst Edison Yu kept his buy rating but trimmed his price target from $465 to $420.
Even with the cut, that target still implies a 34% gain from Friday’s closing price. Yu’s main concern is speed, not direction. He wrote that robotaxi and Optimus, especially the robot’s supply chain, are scaling slower than Wall Street expected.
He also said investor enthusiasm for “embodied AI” broadly has cooled off, and warned Tesla may go the rest of the year without a major milestone while cash burn increases.
That cash burn shows up in the numbers.
Tesla’s automotive margins, excluding regulatory credits, fell from 19.2% to 16.3% quarter over quarter. Energy storage margins dropped even more sharply, from 39.5% to 20.4%, partly due to a warranty charge and tariff benefits that didn’t repeat.
Free cash flow turned negative as capital spending more than doubled sequentially, and management has guided for over $25 billion in capex this year alone, with more increases expected in 2026 and beyond.
Deutsche Bank wasn’t alone. A wave of other analysts also reiterated their ratings on Tesla stock after earnings but cut price targets, largely because of the negative free cash flow.
Some believe the heavy spending will weigh on Tesla stock in the near term, while others are split on whether the investments in robotaxi, Optimus, and AI infrastructure will eventually pay off.
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What the Market Is Telling Us About Tesla Stock
The size of the sell-off suggests investors are less focused on Tesla’s near-term vehicle business and more worried about the pace of its next-generation bets.
Management has pointed to real progress, including more than 380,000 unsupervised robotaxi miles driven with zero notable incidents, but Wall Street wants to see that progress translate into scale faster.
For now, Tesla stock is being treated as a show-me story. Investors want proof that robotaxi and Optimus can ramp meaningfully, rather than promises about the years ahead.
Until Tesla delivers a clearer milestone, Deutsche Bank’s more cautious target suggests the stock could stay under pressure even as the long-term bull case remains intact.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
