Deutsche Bank analyst Edison Yu has reaffirmed a Buy rating on Tesla (NASDAQ: TSLA) stock, maintaining a price target of $345.
His optimism is driven in part by the anticipated rollout of Tesla’s upcoming low-cost electric vehicles, ahead of the company’s upcoming earnings report.
At the close of the last market session, Tesla shares ended up over 3%, at $329.65. In pre-market trading, the stock continued to show strength, rising 1.41% to $334.
Yu sees further upside, citing Tesla’s plans to launch its low-cost “Model Q” in Q4 2025. The bullish outlook also comes ahead of Tesla’s Q2 2025 earnings report, set for July 23.
Tesla’s revenue outlook
Analysts expect adjusted earnings per share (EPS) of $0.40 on revenue of $22.42 billion. Yu projects revenue slightly lower at $22.2 billion, with automotive gross margins rising to 14%, up from 12.5% in the first quarter. He also raised his full-year margin forecast to 13.8%.
For context, Tesla reported EPS of $0.52 on $25.5 billion in revenue in Q2 2024. The decline in expectations reflects softer EV demand and intensifying competition in China. Notably, Tesla has missed earnings estimates in six of the last eight quarters.
Yu forecasts total deliveries for 2025 at 1.58 million units, a 12% year-over-year decline and below the Street consensus of 1.62 million units. His forecast includes 25,000 units of the upcoming Model Q, which he sees as a critical swing factor for Q4.
The expert also highlighted the upcoming release of the Model Y Long in China this fall, a six-seater version with an extended wheelbase, as a potential growth driver.
Tesla delivered 384,000 vehicles in Q2, beating Deutsche Bank’s internal forecast. Now, Yu expects the company’s recently launched robotaxi service, which debuted in Austin on June 22, to expand to San Francisco, Phoenix, and Miami, with up to 1,000 units deployed in the next six to nine months.
Tesla’s downside risks
While the outlook remains bullish, Tesla still faces considerable headwinds following a turbulent 2025 marked by boycotts, declining sales, and rising political scrutiny. CEO Elon Musk’s increasing involvement in politics, including public clashes with President Donald Trump, has added to the uncertainty surrounding the Texas-based automaker.
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