Tesla Faces Pivotal Earnings Call Amid Weak Deliveries, Investor Concerns, and Long-Term Vision Questions

As Tesla prepares to announce its second-quarter earnings this Wednesday (U.S. time), market expectations remain cautious amid declining vehicle sales, strategic uncertainty, and increasing scrutiny of CEO Elon Musk’s leadership, according to Josh Gilbert, Market Analyst at eToro. “Even if Tesla delivers a solid set of numbers, it’s unlikely to escape heavy scrutiny when it reports earnings,” said Gilbert. “The optimistic scenario is that cost-cutting efforts and developments in AI and autonomy provide some relief. But realistically, expectations are low.” Tesla reported a 13.5% year-on-year decline in global vehicle deliveries for Q2, totaling 384,122 units, falling short of analyst estimates. The company’s highly anticipated Cybertruck has also underperformed, marking its third consecutive quarter of declining sales, now at their lowest level in a year. Adding to investor concerns is the continued public profile of CEO Elon Musk. “Elon’s Tony Stark-like persona has long been a strength, but it’s hard to argue his growing political ambitions aren’t weighing on Tesla’s brand,” Gilbert noted. “His recent moves toward founding a U.S. political party and attempts to tap into Tesla’s cash reserves to fund his private AI company, xAI, may not sit well with investors seeking more stability and focus at the helm.” Such plans would require shareholder approval, and while there may be theoretical long-term benefits, Gilbert believes “it will be a hard case to make,” particularly as investors are already wary of Musk’s divided attention. Still, there are high points. Tesla remains a market leader in EVs and continues to push forward in autonomous driving, especially through its Robotaxi program. “This is a key pillar of Tesla’s long-term growth strategy,” Gilbert said. “But while the vision is ambitious, timelines have repeatedly shifted since Musk’s original 2015 promise of full self-driving capability. Investors now want progress—not just promises.” Tesla’s lofty valuation, currently more than 20 times that of General Motors, is under pressure. “Such a premium demands transformational growth,” said Gilbert. “If the company continues to underdeliver, justifying that valuation becomes increasingly difficult.” Despite the headwinds, Tesla remains a core holding among retail investors. It is the second most-held stock globally on the eToro platform, reflecting continued long-term investor faith. Markets are expecting Q2 earnings per share (EPS) of $0.44, a 20% decline year-over-year, with revenue projected to fall 11% to $22.8 billion.

“Tesla is still a solid company, but this earnings call could be pivotal,” Gilbert concluded. “With

weakening fundamentals, delivery shortfalls, and leadership distractions in focus, Elon Musk will need to deliver some Musk magic to turn Tesla’s 2025 outlook around.”