Analyst sends bold message on Tesla stock after disappointing news | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Tesla’s (TSLA) quarterly vehicle deliveries fell for the second consecutive quarter, deepening concerns about sliding demand and rising competition in the global EV race.

The automaker reported 384,000 vehicle deliveries for the June quarter, down 14% from a year earlier and slightly below Wall Street expectations of 387,000.

The company delivered 443,956 vehicles during the same period last year and 336,681 in the first quarter of 2025, which was also a 13% year-over-year decline. Deliveries are generally defined as exact sales.

The latest figures reflect growing pressure on Tesla’s position in the global electric vehicle market. The company is grappling with intensifying competition, particularly from Chinese automakers offering newer and cheaper EV models.

Tesla shares rose nearly 5% on July 2, after a sharp 5.3% drop the day before pushed the stock down to $300.71.

Year-to-date, Tesla stock is down 22%, the weakest performer among the Magnificent Seven stocks.

Though once allies, Musk and Trump have clashed more openly since Musk stepped down from his federal role in May.

Image source&colon; Apu Gomes/Getty Images

Musk slams Trump’s bill

Tesla is also contending with political challenges linked to CEO Elon Musk despite optimism about the company’s robotaxi pilot in Austin, Texas.

Public criticism has mounted over Musk’s growing involvement in national politics. He was a prominent supporter of Donald Trump during last year’s election and briefly led DOGE, a government reform initiative under the Trump administration that aimed to reduce the size of federal agencies.

Though once allies, Musk and Trump have clashed more openly since Musk stepped down from his federal role in May.

Musk recently criticized Trump’s sweeping tax and spending bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla. The bill passed the Senate by a narrow margin on July 1.

“The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm,” Musk wrote on X. He also called it “political suicide for the Republican Party” and called for the creation of a new political party.

Tesla could lose up to $1.2 billion in earnings if the electric vehicle credit is removed, equal to about 17% of its 2024 operating income, according to J.P. Morgan estimates reported by Reuters.

Tesla will report its full second-quarter financial results on Wednesday, July 23, after the market closes.

Wedbush sends bullish note on Tesla stock following latest deliveries

Wedbush analyst Daniel Ives reiterated an outperform rating and a price target of $500 for Tesla stock following its deliveries.

Ives said the delivery number came “better than feared” as the company saw success with its Model Y refresh cycle in the quarter. He also pointed to signs of a rebound in China.

“Despite seeing more low-cost models enter the market from Chinese OEMs, the company’s recent updates to the Model Y spurred increased demand,” Ives wrote. “Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle.”

Looking ahead, Ives believes Tesla remains well-positioned in the race for autonomous driving.

More Tesla:

“Tesla will own the autonomous market in the US,” he said, citing the rollout of unsupervised FSD in Austin and the potential to license the technology globally.

Still, Ives warned that Elon Musk’s public feud with former President Trump could stir investor unease, especially with government policy key to Tesla’s autonomous plans.