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Wall Street Divided on Tesla Ahead of Q1 Earnings

The split reflects a bet that Tesla’s valuation rests on robotaxi economics, not near-term car profits.

Overview

  • Tesda, which reports Q1 results Wednesday, is expected to post earnings of $0.36 a share on $22.3 billion in revenue.
  • Jefferies raised its price target to $350 but kept a Hold rating, warning results could widen the gap between autonomy goals and current execution.
  • Bank of America reiterated a $460 Buy, arguing Tesla’s camera-only self-driving cuts hardware costs and could support more profitable robotaxi scale.
  • After a delivery shortfall that left about 50,000 more vehicles produced than sold, investors will scrutinize margins, inventory, and an expected negative $1.4 billion in free cash flow.
  • Robotaxi remains the swing factor, with limited service now in Dallas and Houston for a total of four markets as investors await an update on the rollout timeline.