Zacks Research Has Pessimistic Opinion of Tesla Q2 Earnings

Key Points

• Zacks Research cut its Tesla Q2 2027 EPS forecast to $0.00 from $0.05. It also projects just $0.10 per share for FY2027 and $0.07 for FY2028.
• Tesla’s latest quarter delivered EPS of $0.48, slightly above the $0.46 consensus, while revenue of $28.05 billion was just below estimates and down 0.2% year over year.
• Analyst sentiment remains broadly positive: Tesla has a “Moderate Buy” consensus rating and an average price target of $414.51, despite the reduced earnings outlook.

Tesla, Inc. (NASDAQ:TSLA - Free Report) - Equities researchers at Zacks Research decreased their Q2 2027 EPS estimates for shares of Tesla in a research report issued to clients and investors on Wednesday, November 4th. Zacks Research analyst Team now anticipates that the electric vehicle producer will earn $0.00 per share for the quarter, down from their prior estimate of $0.05. The consensus estimate for Tesla's current full-year earnings is $0.67 per share. Zacks Research also issued estimates for Tesla's Q3 2027 earnings at $0.01 EPS, Q4 2027 earnings at $0.06 EPS, FY2027 earnings at $0.10 EPS, Q1 2028 earnings at $0.07 EPS, Q2 2028 earnings at $0.00 EPS, Q3 2028 earnings at $0.00 EPS and FY2028 earnings at $0.07 EPS.

Tesla (NASDAQ:TSLA - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.02. The business had revenue of $28.05 billion for the quarter, compared to analyst estimates of $28.06 billion. Tesla had a net margin of 3.11% and a return on equity of 3.03%. The business's revenue was down .2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.50 earnings per share.

TSLA has been the subject of several other research reports. Tigress Financial began coverage on Tesla in a research report on Thursday, October 22nd. They issued a "buy" rating for the company. Stifel Nicolaus set a $475.00 target price on shares of Tesla in a research report on Thursday, October 22nd. Barclays upgraded shares of Tesla from an "outperform" rating to an "overweight" rating and boosted their target price for the stock from $370.00 to $450.00 in a research report on Monday, October 26th. UBS Group raised shares of Tesla from a "neutral" rating to a "buy" rating in a research note on Monday, October 26th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Tesla in a report on Monday, October 19th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, sixteen have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Tesla has an average rating of "Moderate Buy" and an average price target of $414.51.

Tesla Price Performance

Shares of TSLA opened at $358.22 on Monday. Tesla has a twelve month low of $297.38 and a twelve month high of $498.83. The stock's 50 day moving average is $372.14 and its two-hundred day moving average is $384.35. The firm has a market capitalization of $1.42 trillion, a PE ratio of 393.65, a P/E/G ratio of 22.19 and a beta of 1.74. The company has a current ratio of 1.74, a quick ratio of 1.39 and a debt-to-equity ratio of 0.09.

Insider Buying and Selling

In other news, CFO Vaibhav Taneja sold 2,606 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total value of $938,498.78. Following the sale, the chief financial officer directly owned 25,972 shares in the company, valued at $9,353,296.36. This represents a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 20.00% of the company's stock.

Institutional Investors Weigh In On Tesla

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Peirce Capital Management LLC grew its holdings in shares of Tesla by 1.5% in the 2nd quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer's stock valued at $697,000 after buying an additional 25 shares during the period. Cadence Wealth Management LLC increased its position in shares of Tesla by 4.7% in the 1st quarter. Cadence Wealth Management LLC now owns 580 shares of the electric vehicle producer's stock valued at $216,000 after buying an additional 26 shares in the last quarter. Phillip James Consulting Co. raised its stake in Tesla by 8.7% during the 1st quarter. Phillip James Consulting Co. now owns 326 shares of the electric vehicle producer's stock worth $121,000 after buying an additional 26 shares during the period. Crumly & Associates Inc. raised its stake in Tesla by 0.6% during the 2nd quarter. Crumly & Associates Inc. now owns 4,698 shares of the electric vehicle producer's stock worth $1,976,000 after buying an additional 26 shares during the period. Finally, Brickley Wealth Management lifted its holdings in Tesla by 3.6% during the second quarter. Brickley Wealth Management now owns 757 shares of the electric vehicle producer's stock worth $318,000 after acquiring an additional 26 shares in the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Elon Musk said Tesla plans to wind down Cybertruck production at its Texas factory around mid-2027 to make room for more Cybercab robotaxis. Investors may see the move as reallocating capacity toward Tesla’s autonomous-driving ambitions; the truck accounted for less than 2% of third-quarter deliveries. CNBC article
• Positive Sentiment: A new AI-accelerator roadmap was also highlighted as a catalyst for the stock, reinforcing investor interest in Tesla’s AI strategy beyond vehicle sales. TipRanks article
• Neutral Sentiment: EV shares broadly rebounded after the sector’s post-election sell-off, offering a market-level tailwind for Tesla. 247WallSt article
• Negative Sentiment: The production wind-down underscores Cybertruck demand and execution challenges: reports cite sharply lower sales, delays, quality issues, and multiple recalls. The Cybercab opportunity is not yet proven and depends on regulatory clearance, customer adoption, and viable economics. Reuters article

About Tesla

Tesla, Inc designs, develops, manufactures and sells electric vehicles and energy products. Its vehicle lineup includes the Model S, Model 3, Model X, Model Y and Cybertruck, along with related software and services.

The company also provides energy generation and storage products, including solar systems, Powerwall home batteries and Megapack utility-scale storage. Its services include vehicle maintenance, charging through the Supercharger network and software features for its vehicles.

Founded in 2003 and headquartered in Austin, Texas, Tesla serves customers in markets around the world.

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