Tesla (TSLA) Gets Price Target Boost Despite Challenging Q2 Outlook

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Analysts Are Tracking Closely. On July 21, Bank of America reiterated the stock as “Neutral” while raising its price target for the shares to $341 from $305. The firm noted that it sees a challenging setup for Tesla shares, but also cited a stronger cash position and revised valuation metrics for the company.

Bank of America is of the view that Q2 results are “likely to be challenged due to tariffs and disappointing deliveries.”

“Tesla 2Q earnings results are likely to be challenged due to tariffs and disappointing deliveries. Although Tesla produces all its vehicles in the US and it manufactures vehicle with a high proportion of content made in North America, the exposure to tariff is not insignificant.”

The firm anticipates mixed outcomes in the later part of the year.

“3Q25 may benefit from demand pull forward in the US while 4Q25 may be challenged due to the phase out of IRA incentives.”

Pixabay/Public Domain

A positive factor working in favor of Tesla is that its autonomous driving push continues to advance with the rollout of its robotaxi service launch in Austin, Texas.

“This gives us more confidence on the promise to deliver unsupervised FSD by the end of 2025,”

However, it did caution that the launch holds “immaterial financial ramifications in the immediate term.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

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Disclosure: None.