Tesla Inc. (NASDAQ:TSLA) shares are down sharply after the company’s earnings update, putting the stock on track for its worst session in more than a year.
Tesla was down 14% in the session, a move that would mark its worst day since June 2025.
Tesla’s Q2 Earnings Miss
The decline follows a disappointing second-quarter earnings report. On Thursday, Tesla reported an adjusted earnings per share of 33 cents, falling short of the 50 cents expected by analysts.
Despite record deliveries of 480,126 vehicles, up 25% year-over-year, the company is facing pressure from discounting strategies aimed at boosting top-line growth.
Former Tesla president Jon McNeill noted that these discounts, combined with a significant drop in regulatory credit revenue, have squeezed margins.
Analysts Adjust Tesla Price Targets
Analysts have responded to Tesla’s earnings miss by adjusting their price targets. On Thursday, Cantor Fitzgerald‘s Andres Sheppard lowered his target from $510 to $485, while Morgan Stanley’s Andrew Percoco reduced his from $417 to $400. Despite these adjustments, Sheppard highlighted the progress Tesla is making in expanding its Full Self-Driving (FSD) capabilities in China and Europe, viewing these as underappreciated growth areas.
Technical Analysis
Tesla (NASDAQ:TSLA) stock’s relative strength index (RSI) is at 29.23, indicating it is oversold. Over the past week, Tesla lost about $251.64 billion in market cap, reflecting significant investor concern following its earnings report.
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