Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

Tesla remains a company with very strong liquidity and, at the same time, an extremely expensive valuation, which is what determines the cautious conclusion on fair value. On the balance sheet side, it has comfortable metrics: cash on hand is high, a current ratio of 2.04 and a quick ratio of 1.62 point to a solid short-term cushion, and a debt/equity ratio of just 0.09 indicates a low debt burden compared with the industry. At the same time, long-term debt increased over the year, and total liabilities continue to rise, so the balance sheet cannot be considered risk-free, even though it remains strong. The earnings quality picture is weaker: ROE, ROA, ROI, and return on tangible equity are noticeably below industry medians and have deteriorated in recent periods compared with the stronger levels seen at the beginning of the year. Margins also do not look convincing for a premium valuation: gross margin, operating margin, and net profit margin are below the industry median, and net profitability remains modest. Revenue and gross profit are large in absolute terms, and EBITDA and operating income support the scale of the business, but profit and EPS trends show that monetization of this scale is still not efficient enough. Especially important are the P/E of 347.64, P/S of 13.66, P/B of 16.79, and P/FCF of 191.14: all of these multiples are extremely above industry benchmarks and already price in a very high level of expectations. The overall trend in the multiples has improved from the higher levels at the end of 2025, but even after the decline they remain too expensive for the current quality of earnings. The absence of dividends removes one of the sources of valuation support for a conservative investor. Overall, the fundamentals present a mixed picture: a strong balance sheet and business scale versus weak profitability and a very high valuation. Therefore, it is logical to slightly lower the target forecast, maintaining a cautious approach and taking into account that for Tesla, the premium to the market is already partially or fully reflected in the price.

Tesla, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, незначительно упал. Медведи в растерянности.

Medium index, slightly down. The bears are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Сильный индекс, без изменений. Приток средств в шорты на высоком уровне.

Strong index, flat. Inflow of funds into shorts at a high level.

Tesla’s strong balance sheet and business scale are offset by low profitability and extremely high multiples, so the valuation should be slightly lowered.

Key Points
Tesla beat delivery and revenue estimates in the most recent quarter but missed on profit and margins.
Rising costs and an unfavorable sales mix hurt profitability.
Tesla bulls will see a good buying opportunity developing.
With Tesla (NASDAQ: TSLA) having already released its estimate-busting delivery numbers for the quarter, investors were optimistic that the company would deliver other second-quarter numbers that were ahead of the Wall Street consensus estimates published on its investor relations page. Unfortunately, it did not, and the consternation around the miss is one reason the stock declined post-earnings.
Tesla misses earnings estimates
Automotive deliveries of 480,126 in the quarter, compared to the consensus estimate for 406,024, contributed to revenue beating expectations. However, on every other headline metric, Tesla missed expectations, even with revenue coming in $652 million higher than modeled.
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Both cost of goods sold (COGS) and operating expenses came in higher than expected, negatively affecting gross margin and operating margin, respectively.
Metric
Wall Street Consensus
Actual
Difference
Revenue
$27,584 million
$28,236 million
Better by $652 million
Gross profit
$5,378 million
$4,751 million
Worse by $627 million
Gross profit margin
19.5%
16.8%
Worse by 270 basis points
Operating profit
$1,503 million
$398 million
Worse by $1,105 million
Operating profit margin
5.4%
1.4%
Worse by 400 basis points
Why Tesla missed estimates
The first point to note is that if Tesla had met analyst expectations for automotive revenue per delivery, then its revenue would have been higher. Based on the consensus automotive revenue estimate of $20.05 billion, and the delivery consensus, Tesla's automotive revenue per delivery would have been $49,376. Multiplying that by its delivery number produces $23.7 billion. Adding that to energy ($3.1 billion) and services ($4.6 billion) comes to $31.4 billion, compared with the actual number of $27.6 billion in the table.
Ultimately, the automotive revenue per delivery of $42,730 came in lower than expected because of a combination of discounting, incentives, relatively more sales to lower-priced markets, and a shift in models away from the higher-priced, and no longer produced, Model S and Model X, and toward lower-priced standard versions of the Model 3 and Model Y.
Costs are rising
Second, on the cost of goods sold, CFO Vaibhav Taneja cited rising commodity costs and interest rate changes: "... as interest rates have risen this year, the cost of subvention has risen along with them." In plain English, rising rates have made it more expensive for Tesla to offer promotional financing rates to customers.
Third, turning to rising operating expenses, Taneja cited increasing "research and development-related activities, including preproduction [ramp-up] costs for new products like the Semi truck, Optimus, Cybercab, and other AI initiatives, as well as the appreciation for an additional compute that we brought online." He also said operating expenses would "continue to grow in 2026 and beyond."
What it means to Tesla investors
Having decided to go all in on production and capital spending for growth in 2026, the incentives that increased COGS make sense, as do the increased research and development costs to drive growth. The reality is Tesla wins when it delivers more vehicles and builds scale.
While the incentives and cost increases were more than many expected, they could have been forgiven if Tesla's robotaxi rollout had kept pace with the expectations CEO Elon Musk had previously outlined. If Tesla demonstrates better progress on that front, investors will be more accepting of increased costs and a less favorable sales mix.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tesla Delivered 480,126 Vehicles in a Quarter and Still Missed on Profit. Here's Where the Money Went.

Key Points
If Bitcoin can grow at a CAGR of 25%, it can regain its all-time high of $126,000 within three years.
With the influx of money from institutional investors, Bitcoin may be losing some of its explosive upside potential.
Going forward, investors should think of Bitcoin as a high beta tech stock.
It's easy to find outlandish price targets for Bitcoin (CRYPTO: BTC). For example, some top investors think that a single Bitcoin will be worth upwards of $1 million within just a few years.
Just how realistic is that target? A more likely scenario is that Bitcoin will regain its all-time high of $126,000 within the next three years. Given a total circulating coin supply of 20 million, that works out to a total market cap of $2.5 trillion.
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What is a realistic growth rate for Bitcoin?
Let's start with the obvious -- Bitcoin is no longer growing as fast as it was during its early years. While Bitcoin is still capable of delivering triple-digit returns to investors for years, it is unlikely to have the sort of year that it had in 2013, when it soared in value by 5,429%.
In short, Bitcoin has entered a new maturity phase, powered by a huge influx of money from institutional investors. Bitcoin, like any cryptocurrency, will continue to be volatile. But it will no longer be as explosive as it once was. It will begin to behave more and more like a high beta tech stock.
That means investors might need to settle for an annual growth rate of 25%. That figure is in line with what top tech stocks can deliver. Bitcoin, with a $1.3 trillion market cap, certainly fits into that category. That's roughly the size of Tesla (NASDAQ: TSLA), which has a market cap of $1 trillion.
Bitcoin's path to $126,000
So let's do the math. Let's assume that Bitcoin will grow at a compound annual growth rate (CAGR) of 25% over the next three years. Using $65,000 as a starting price, that works out to a final price of roughly $126,000 in three years.
That means Bitcoin will regain its all-time high from October 2025, but it will take some time. At that price, Bitcoin will be worth roughly $2.5 trillion.
Just be aware: A CAGR of 25% does not mean that Bitcoin will churn out 25% gains each year. Instead, that's the "smoothed-out" growth rate. There will be highs and lows. Bitcoin has always been very cyclical, with the good years more than making up for the bad years.
Maybe a total market cap of $2.5 trillion sounds underwhelming. Perhaps it is. That being said, there's nothing wrong with a CAGR of 25%. The extra risk that you take by investing in a cryptocurrency such as Bitcoin is more than compensated for by the extra return. I'm still bullish on Bitcoin, but I'm also keeping my expectations in check going forward.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Bitcoin Will Be Worth $2.5 Trillion in 3 Years

Key Points
Tesla closed at $307.44 on Tuesday, about 3% above its 52-week low of $297.82.
The stock set 52-week lows in mid-2019, in early 2023, and in April 2024, and it rebounded within a year each time.
Tesla's operating margin fell to 1.4% last quarter even as deliveries set a second-quarter record.
Tesla (NASDAQ: TSLA) closed at $307.44 on Tuesday, about 3% above its 52-week low of $297.82. The electric car maker's shares have had a rough stretch, including a roughly 15% single-day drop following the company's second-quarter report last week.
A stock scraping along the bottom of its yearly range tends to scare investors off. But Tesla has traded down to these depths before -- three times in the past eight years, in fact. And each time, the investors who bought while the news was ugly ended up looking smart.
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So it's worth walking through what actually happened the last three times Tesla's stock fell this far, and what's different about the current episode.
Three lows, three rebounds
The first episode came in mid-2019. Tesla closed at a split-adjusted $11.93 on June 3 of that year, a multi-year low, as the company burned cash and skeptics questioned demand for its Model 3. Tesla was still losing money at the time. One year later, the stock had nearly quintupled, closing at $58.86 on June 3, 2020.
The second came in early 2023. After falling about 65% in 2022, Tesla closed at $108.10 on Jan. 3, 2023. Within days, the company cut prices across its lineup, and deliveries went on to hit records that year. Six months later, the stock had more than doubled to $279.82.
A year on from that January low, shares sat at $238.45, up about 120%.
The third came in April 2024. Tesla closed at $142.05 on April 22 that year, three weeks after reporting its first year-over-year decline in quarterly deliveries since 2020. To be fair, the recovery took longer this time. But it came. Twelve months later, shares had climbed about 68% to $237.97.
Notice what all three episodes have in common. Each time, the market's fear was about demand -- for the Model 3 in 2019, for electric vehicles in a shakier economy in 2023, and for an aging lineup in 2024. And each time, the company eventually produced a demand answer, whether through price cuts that filled its factories or the promise of cheaper models ahead.
Why this episode looks different
That history is arguably the strongest case for buying Tesla near $300. But the current setup breaks the pattern in two ways.
First, demand isn't the problem this time. Tesla delivered 480,126 vehicles last quarter, a second-quarter record, and revenue climbed 26% from a year earlier to $28.2 billion. That was an acceleration from the first quarter's 16% growth.
The scare is about profit. Operating income fell 57% year over year to $398 million, leaving an operating margin of just 1.4% (down from 4.1% a year earlier). Adjusted earnings per share declined 18% to $0.33. And with capital expenditures reaching $5.8 billion for the quarter (more than twice the year-ago level) as Tesla pours money into AI (artificial intelligence) computing, its robotaxi service, and its Optimus robot program, free cash flow went negative.
Second, the price of admission is different. When Tesla bottomed in January 2023, the stock traded near 30 times its prior-year earnings. In 2019, the company had no earnings at all, but its market value was a small fraction of today's.
Now, even sitting 3% above its 52-week low, Tesla trades at about 285 times earnings.
Put another way, the stock is near a price low, but it's nowhere near a valuation low. The earlier recoveries began when returning growth met a beaten-down multiple. Today's multiple isn't beaten down. It already assumes the spending currently crushing margins will pay off in a big way.
So, does history say Tesla stock is a buy at $307? Not quite. What history actually shows is that this stock has rewarded buyers when a demand scare met a reasonable price. Today's version offers neither. Demand is already strong, and the price still assumes years of success that hasn't arrived.
Of course, the pattern could go four for four. If operating profit inflects while the stock sits this low, the rebound could be dramatic, and it wouldn't be the first time Tesla made skeptics look silly.
But that's a bet on the spending paying off soon, not a bet on history repeating. Personally, I'll wait to see profits turn before buying this dip.
Don’t miss this second chance at a potentially lucrative opportunity
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Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $511,613!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,817!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $390,394!*
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Daniel Sparks has clients with positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tesla Closed Tuesday 3% Above Its 52-Week Low. Here's What Happened the Last 3 Times It Got This Close.

Key Points
SpaceX's Starship rocket recently completed its 13th test flight.
It achieved most of its goals and launched new versions of Starlink satellites into space.
But shareholders weren't enthused, as SpaceX's AI spending remains the focus of the company's rising costs.
Space Exploration Technologies (NASDAQ: SPCX) recently completed the 13th test flight of its large Starship rocket, and by the company's own accounts, it was mostly successful. Even with the rocket completing many of its objectives -- including a soft splashdown in the Indian Ocean and the release of Starlink satellites -- investors weren't wowed.
In the first trading session following the launch, SpaceX stock was down by more than 4%.
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So, why aren't shareholders pleased with the results? It's likely because SpaceX is spending billions of dollars to build its artificial intelligence infrastructure -- and they're worried it won't pay off.
Why a successful launch isn't enough for investors
Starship is an important part of SpaceX's future because the world's largest rocket could help the company eventually reduce the cost of reaching orbit by 99% compared to the historical average launch cost.
Starship will be used to launch payloads into space for customers and, as the test flight showed, send more Starlink satellites into space. Starlink is critical to SpaceX's growth, as the satellite internet service is SpaceX's biggest revenue driver. Starlink sales were about $3.2 billion in Q1 2026.
But some shareholders likely looked past the successful Starship test because SpaceX is more than just a rocket company, and its spending on its artificial intelligence projects is sky-high.
In the first quarter, 76% of SpaceX's $10 billion in capital expenditure (capex) was allocated to its AI programs, primarily for data center infrastructure. Not only is that a large percentage of total spending, but overall capex spending is accelerating at the company.
In 2025, SpaceX's total capex was $20.7 billion, meaning that in the first quarter of this year, the company had already spent about half of all of last year's total.
Investors are increasingly skeptical that the billions of dollars being spent on AI infrastructure will ultimately pay off for SpaceX and other tech companies. Profits from massive AI spending have been hard to come by, and it's erasing much of the free cash flow that large tech companies are used to generating.
One recent example is Alphabet, whose share price has fallen as investors focused on the fact that its free cash flow was negative $5.9 billion in the first quarter -- its first negative free cash flow since going public in 2004.
SpaceX is worse off because, unlike Alphabet, the company isn't profitable. And investors are skeptical that it'll be profitable any time soon with all its AI spending underway.
It's not the time to buy SpaceX yet
Potential SpaceX investors aren't wrong to be skeptical of SpaceX's spending, and current shareholders are right to be concerned.
The company shows no signs of slowing down its AI investments, and another Musk-led company, Tesla, just reported negative free cash flow for the first time in more than two years. Investors punished Tesla's shares for the decline.
Rockets, satellite internet, and AI business aren't cheap, of course, but I don't think investors are going to give up their aversion to AI overspending any time soon. As long as the spending is high and profits are low, it's likely SpaceX's stock could struggle to gain traction.
What's more, SpaceX shares already trade at a premium. The stock's price-to-sales (P/S) ratio is about 77 right now, compared to the tech sector average P/S ratio of 7.
Owning some AI stocks can be a smart move, but investors may want to focus on more profitable companies right now. The AI spending boom isn't slowing down any time soon, but that doesn't mean shareholders have to own shares of an AI company that's miles away from profitability and spending too much on AI bets that may not pay off.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Even a Successful Starship Launch Wasn't Enough to Lift SpaceX Stock. Investors Are Still Worried About This 1 Thing

Key Points
Tesla's sales were strong in the second quarter, and the company topped $100 billion in trailing-12-month revenue for the first time.
The stock tumbled amid shrinking margins, negative cash flow, and rising capex.
Tesla also plans to borrow up to $30 billion this year.
Think you're having a rough summer? At least you haven't lost $300 billion like Tesla (NASDAQ: TSLA) CEO Elon Musk.
Musk made history this year when his other mammoth company, Space Exploration Technologies, went public, pushing Musk's personal wealth to more than $1 trillion. He became the first -- and only -- trillionaire in recorded history.
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But it didn't last. SpaceX stock has fallen below its initial public offering price, and Tesla is hemorrhaging value following the company's second-quarter earnings report. Even though Tesla reported strong revenue -- and posted more than $100 billion in trailing-12-month sales for the first time -- the stock fell by 18% in a single week after July 22 earnings, its worst one-week performance since 2022.
How extensive is Musk's loss? According to the Bloomberg Billionaires Index, his net worth is now $709 billion. Musk lost more money in the last six weeks than anyone else on the list even possesses. (No. 2 on the list is Larry Page, the co-founder of Alphabet, with a net worth of $281 billion.) Musk acknowledged this loss in a social media post on X, simply writing, "(Former) Trillionaire."
Let's see why the market has turned on Tesla stock despite its strong revenue growth.
The red flags surrounding Tesla now
Tesla's primary business is electric vehicles -- the company delivered 480,126 of them in the second quarter, up 25% from a year ago, and that resulted in most of Tesla's $28.23 billion revenue. Tesla said EV sales brought in $20.51 billion, up 23%.
The big problem, however, was Tesla's dwindling margins. Operating margins fell from 4.1% a year ago to just 1.4% in the second quarter of this year. Operating expenses jumped 47%, to $4.35 billion. Tesla reported negative free cash flow of $1.1 billion in the quarter, and its cash and investments dropped by $1.2 billion.
Capital expenditures more than doubled sequentially, according to CFO Vaibhav Taneja, and the company expects them to continue increasing in the second half of the year. Tesla issued guidance for $25 billion in capex spending for the year and announced plans to borrow up to $30 billion.
The market reacts
Undoubtedly, Tesla has huge plans that require enormous investment. Artificial intelligence is essential for Tesla's biggest bets, including self-driving technology and the Optimus robot line. The company is running early versions of its v15 autonomous driving software in robotaxis, but it's unclear when the technology will be ready for nationwide rollout -- or if regulators will sign off on it.
Meanwhile, Tesla is making room for Optimus robot production by discontinuing manufacturing lines at its Fremont, California, factory for Model S and X vehicles. Robots built on that line will be used for further training and development of the hardware and AI software, the company has said, but the technology appears to be a long way from commercial sales.
Tesla has always been priced for perfection, with a high forward price-to-earnings ratio that, even after a drop, still registers at an eye-watering 170. Investors have long been willing to buy and hold Tesla stock based on Musk's vision. But with dwindling margins, negative cash flow, doggedly high spending, and plans to borrow $30 billion, the shine appears to be coming off Tesla stock this summer.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $511,613!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,817!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $390,394!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tesla Stock Suffered Its Worst Week Since 2022, Falling 18% as Investors Balked at Elon Musk's Robotaxi and AI Spending Plans

Key Points
The prospect of high robotaxi and humanoid robot sales is the main reason Tesla gets away with a P/E ratio close to 300.
Ford is working on self-driving technology that can position it to offer robotaxis, and other automakers may follow suit.
If more competitors pile into robotaxis, it can put pressure on Tesla's growth opportunities in this budding new industry.
Ford Motor Company (NYSE: F) scaled back from electric vehicle (EV) models last year, and that was certainly good news for Tesla (NASDAQ: TSLA). However, the company has now announced major news that can bite into one of Tesla's most lucrative markets.
Ford hinted that its vehicles will achieve "point-to-point autonomy" in 2028. The company has Apple executives working on the technology, and it can help Ford enter the robotaxi industry.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The roads are getting crowded
It's no secret that Tesla is overvalued if you look at it as a car company. The average P/E ratio for automobile stocks is 23.1, and Tesla is doing most of the heavy lifting. It's more common to see automobile stocks with P/E ratios between 5 and 15, and Ford fits in that category.
Tesla shares would have to drop by more than 90% just to have the same valuation as other automakers. The Elon Musk factor has certainly kept the valuation high, but investors have relied on three opportunities to justify the high stock price.
Energy generation is one factor, but that was only up by 13% year over year in Q2. It's a serviceable growth rate, but not when Tesla has a P/E ratio close to 300. The other two opportunities are robotaxis and humanoid robots. While commercialized Optimus units can be a boon for the stock, it depends on competition and demand.
Robotaxis also have the same two variables in play, but Ford's entry in a few years suggests that the roads will get more crowded. If Ford masters the technology for robotaxis, why wouldn't other carmakers like Toyota Motor and Volkswagen get involved? The emergence of more automobile companies creating robotaxi fleets is a feasible risk that will put pressure on Tesla's future margins from that segment.
Tesla has lost market leads in the past
Tesla used to be the defining electric vehicle. Anyone who thought of an EV would instantly think of Tesla. However, research from Edmunds found that Tesla's market share in the U.S. EV industry dropped from nearly 80% in 2019 to 43.9% in 2025.
Investors can easily argue that tariffs on non-U.S. EV makers are the only reason Tesla has the largest U.S. market share in the first place. For instance, Tesla is no longer one of the Top 10 EV brands in China, according to The China Passenger Car Association's ranking. It used to comfortably rank in second place often, only behind BYD, but it has ceded considerable ground. Even on the global stage, BYD has surpassed Tesla in total sales, despite tariffs keeping BYD out of the U.S.
A similar pattern looks to be playing out in the robotaxi opportunity. Ford isn't just sitting around waiting for Tesla to get the entire market share, and other automakers may follow suit. It seems logical that they would work on self-driving technology just as they all gave electric vehicles a try.
Most of those EVs didn't become profitable for traditional automakers, but robotaxis can produce higher margins. If they don't get high margins, it can cast more doubt on Tesla's ability to generate high margins and meaningful growth from its robotaxis.
A lot needs to go right for Tesla
Luckily, the robotaxi industry is a big opportunity. Fortune Business Insights projects a compelling 71.9% CAGR through 2034. Tesla's technology is advanced and already operates in multiple cities. Ford and any other automakers that want to participate in this opportunity have some catching up to do. However, if they eventually catch up, it can put pressure on Tesla's growth rates and profit margins.
Given how high Tesla's valuation is compared to other automakers, there is no room for error. However, Tesla isn't exactly crushing the competition, either. Alphabet's Waymo is in more cities than Tesla's robotaxis. Furthermore, Uber Technologies and Nvidia recently partnered in a plan to launch robotaxis across 28 cities starting next year.
Tesla has a history of ceding market share in key industries and regions. While Tesla is still expected to be a robotaxi winner, the gains may be limited given the current valuation and rising competition. Then, maintaining a P/E ratio close to 300 would come down to humanoid robots.
Tesla needs everything to go right to maintain its current level, and Ford's recent news shows that the situation is far from perfect.
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Ford Just Delivered Bad News for Tesla Investors

Key Points
Nvidia's stock is cheap, and the AI infrastructure boom looks like it is here to stay.
Palantir has a frothy valuation but its business is growing rapidly.
Tesla has a high valuation and is dealing with multiple challenges right now.
Investor Michael Burry, who gained fame from the movie The Big Short for his prescient call on the housing market collapse, has not shied away from his bearish view on AI and several prominent AI stocks. Among the stocks Burry is short on are Nvidia (NASDAQ: NVDA), Palantir Technologies (NASDAQ: PLTR), and Tesla (NASDAQ: TSLA).
Let's look at why I'd buy Nvidia, hold Palantir, and sell Tesla.
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Nvidia: The king of AI at a low valuation
Burry doesn't believe that hyperscalers (owners of large data centers) are getting strong returns on their investments, which will eventually lead them to cut back on their AI infrastructure spending. As the biggest winner from this spending, then, it should perhaps be no surprise that he is short Nvidia. The company's graphics processing units (GPUs) have been the main chips powering the AI boom, and if spending slows, so will its revenue growth.
However, there is no sign that this spending will slow. Hyperscalers have only been increasing capital expenditures (capex), with Alphabet recently increasing its 2026 forecast and saying it will spend significantly more in 2027. At the same time, Taiwan Semiconductor Manufacturing is upping its own spending to build new fabs to keep up with chip demand. A conservative company like TSMC doesn't make this decision lightly, as empty and underutilized fabs are a huge blow to a foundry.
With AI data center spending set to continue booming, Nvidia's stock looks like a buy, trading at a very attractive valuation of just above 15 times fiscal 2028 (ending January 2028) analyst earnings estimates.
Palantir: A high valuation but huge opportunity
With its stock trading at a forward price-to-sales (P/S) multiple of nearly 39.5 and a forward P/E of 86, it's easy to see why Burry would be short Palantir. However, this is a company that has been growing rapidly and could become one of the largest in the world over the next decade. As such, it is a stock that I'd hold and would look to buy on any significant pullback.
Palantir has arguably become one of the most important AI stocks, as its AIP platform helps make AI more useful in real-world settings. It does this by gathering data across an organization and organizing it into an ontology that it links to processes, concepts, and physical objects. The result is an AI application layer that helps reduce AI hallucinations and allows organizations to use or swap in and out any large language model (LLM) they want.
The company has seen tremendous, accelerating revenue growth, and existing clients continue to invest more in its solutions, as evidenced by its astounding 150% net dollar retention rate. Palantir has a long runway of growth still ahead, and it is not a stock I'd bet against, even with its hefty valuation.
Tesla: A high valuation with challenges ahead
With a high valuation (172 forward P/E multiple) and a struggling business, one stock I agree with Burry that is a sell is Tesla. The loss of lucrative, pure-gross margin regulatory credits from a change in U.S. emissions policies is a huge blow to the company's profitability. Meanwhile, Tesla saw auto sales slump last year after CEO Elon Musk alienated many potential buyers by getting involved in politics.
Tesla is betting heavily on robotaxis and robots to fuel future growth, but both businesses have challenges. Its robotaxi business has struggled with safety issues and expanding, while rival Waymo races across the country. Meanwhile, its robotics business faces the challenge of creating entirely new parts and developing a new supply chain while overcoming technical hurdles.
Tesla has long been a way to invest in Elon Musk's vision of the future, but with his other company, Space Exploration Technologies, also now public, the two stocks are competing with each other for investors' attention, and this has been hurting both stocks. I'd stay away.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Famous Investor Michael Burry Is Short Nvidia, Palantir, and Tesla. Why I'd Buy 1 of the Stocks, Hold Another, and Sell the Third.

Cummins Inc. CMI is slated to release second-quarter 2026 results on Aug. 4, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $7.33 and $9.33 billion, respectively.
For the second quarter, the consensus estimate for Cummins’ earnings has moved down 15 cents over the past 30 days. Its bottom-line estimates imply growth of 14% from the year-ago reported numbers.
The Zacks Consensus Estimate for CMI's quarterly revenues implies a year-over-year rise of 7.9%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.15%. This is depicted in the graph below:
Cummins Inc. Price and EPS Surprise
Q1 Highlights
Cummins delivered adjusted earnings of $6.15 per share in the first quarter of 2026, which increased 3.2% year over year and 9.8% above the Zacks Consensus Estimate. Revenues of $8.40 billion rose 2.7% from the year-ago quarter and topped the consensus mark by 0.9%. The quarter reflected solid execution in key end markets, highlighted by an adjusted EBITDA margin of 17.7% of sales.
Things to Note
Cummins continues to benefit from rising demand for backup power in data centers and other mission-critical settings, which is supporting the Distribution and Power Systems segments. In first-quarter 2026, Distribution revenues increased and Power Systems delivered record EBITDA dollars, reflecting higher volumes, pricing and operational execution, because of which the company raised its full-year 2026 outlook for the Distribution and Power Systems segments.
The company now expects Distribution revenues to grow 9-14%, up from the previous estimate of 5-10%. CMI expects Power Systems revenues to grow 14-19%, up from the previous estimate of 12-17%. It also lifted Power Systems & Distribution EBITDA margin guidance to about 25-26% and 13.7-14.7%, up from the previous estimate of 23-24% and 13.25-14.25%, respectively.
For full-year 2026, the company also increased its Engine business revenue growth forecast to 7-12% compared with its earlier outlook of flat to 5% growth. It raised its EBITDA margin projection to a range of 12.5-13.5%, representing a 50-basis-point increase at the midpoint. It has raised its forecast for the Components business for 2026 and expects revenues now to be up 5% to 10%, up from prior guidance of flat to up 5%. The stronger outlook is primarily supported by improved expectations for North America heavy- and medium-duty truck demand, particularly in the first half of the year.
Expected growth across Distribution, Power Systems, Engine and Components segments in full-year 2026 is likely to have boosted Cummins’ performance in the second quarter.
Let’s have a look at our estimates for CMI’s segmental performance.
We expect Engine revenues to be $3.22 billion, suggesting an 11.2% year-over-year increase. For the Power Systems segment, we project sales of $2.1 billion, indicating an 11.2% year-over-year increase. We expect Components sales to be $2.67 billion, suggesting a decline of 1.5% year over year. For the Distribution segment, we project sales of $3.3 billion, indicating a 7.5% year-over-year increase. We expect Accelera revenues to be $71 million, implying a 32.4% year-over-year decline.
Our estimate for the Engine segment’s EBITDA is $454 million, which suggests a rise of 13.6% year over year. We expect the Power Systems segment’s EBITDA to be $519 million, suggesting a rise of 20.7% year over year. Our estimate for the Component segment’s EBITDA is pegged at $385.9 million, suggesting a decline of 2.8% year over year. We expect the Distribution segment’s EBITDA to be $485.9 million, indicating a 9.2% year-over-year decline.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: CMI has an Earnings ESP of +0.78%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Releases From Auto Space
General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
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Cummins Gears Up to Report Q2 Earnings: What's in the Cards?

Asbury Automotive Group ABG reported second-quarter 2026 adjusted earnings of $6.82 per share, which declined 8.2% year over year but exceeded the Zacks Consensus Estimate of $6.30 by 8.25%. The bottom-line beat reflected stronger used-vehicle profitability despite weaker new-vehicle margins. Revenues of $4.38 billion rose 0.3% from the prior-year quarter but missed the consensus mark of $4.46 billion by 1.78%.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
ABG's Revenue Mix
New-vehicle revenues increased 1% year over year to $2.33 billion, while used retail revenues declined 3% to $1.09 billion. Wholesale used-vehicle revenues fell 9% to $141.9 million, leaving total used-vehicle revenues down 4% at $1.24 billion.
Parts and service revenues advanced 6% to $634.6 million, while finance and insurance revenues edged up 1% to $183.8 million. The revenue mix shifted modestly toward parts and service, which represented 14.5% of total revenues compared with 13.8% a year earlier.
Asbury's Vehicle Economics
New-vehicle unit sales were nearly flat at 44,245 units. Luxury and import sales increased 6% and 5%, respectively, but domestic unit sales declined 15%. The average new-vehicle selling price rose 2% to $52,666. Despite the pricing gain, new-vehicle gross profit fell 14% to $138.2 million as gross profit per unit declined 13% to $3,124.
Used retail unit sales decreased 9% to 33,098, while the average selling price increased 6% to $33,054. Used retail gross profit rose 6% to $66.2 million, supported by the 16% improvement in gross profit per unit. Wholesale gross profit dropped 54% to $3.1 million.
Parts and service gross profit increased 5% to $374.2 million, making it the company’s largest gross profit contributor. Finance and insurance gross profit rose 2% to $171.4 million, with gross profit per vehicle retailed increasing 6% to $2,216.
Total gross profit was $753.1 million, essentially flat year over year, while gross margin remained at 17.2%.
ABG's Same-Store Operations Remain Soft
Same-store revenues declined 7% to $3.76 billion, while same-store gross profit decreased 7% to $643.2 million.
New-vehicle unit sales fell 6% to 38,908, and used retail unit sales declined 14% to 28,821.
Same-store new-vehicle gross profit per unit dropped 18% to $2,896. In contrast, used retail gross profit per unit increased 10% to $1,927, and finance and insurance gross profit per vehicle retailed rose 5% to $2,214. Same-store parts and service gross profit declined 1% to $322.8 million.
Other Tidbits
Selling, general and administrative expenses rose 7% to $506.4 million. Adjusted SG&A increased 4% to $496.7 million and represented 66% of gross profit, compared with 63.6% in the year-ago quarter.
Income from operations declined 15% to $219.5 million. Adjusted operating margin contracted to 5.3% from 5.8%, while adjusted EBITDA decreased to $234.8 million from $255.8 million. The results reflected higher expenses and weaker new-vehicle economics.
The company generated $305.2 million of adjusted operating cash flow during the first half of 2026 and reported adjusted free cash flow of $188 million. It ended June with $966 million of liquidity and a transaction-adjusted net leverage ratio of 3.4 times.
ABG repurchased about 668,000 shares for $131 million during the quarter. Year to date, it bought back roughly 1.35 million shares for $278 million, leaving approximately $322 million under its authorization.
Asbury currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asbury Advances Its Tekion Rollout
Asbury had converted 70% of its stores to the Tekion dealership management system as of July 28 and expects to complete the rollout in fall. Management noted stronger productivity, customer-pay performance, technician efficiency and sales effectiveness in markets that had used the platform for at least five months.
In June, the Koons, Georgia and Florida stores increased average units per salesperson by 12% and dollars per technician by 10%. Management expects the platform to support better operating efficiency and is targeting same-store adjusted SG&A as a percentage of gross profit in the low-60% range by the end of 2027.
Key Releases From the Auto Space
General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
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ABG Q2 Earnings Beat on Used-Vehicle Gains, Revenues Miss

Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Favorable mix and net pricing helped lift adjusted EBIT by 17% to $2.5 billion, while adjusted EBIT margin expanded to 5.2% from 4.3%.
Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. The company’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year.
Ford Benefits From Stronger Mix and Pricing
Wholesale units declined 12% year over year to 1,039,000, reflecting product discontinuations, aluminum supply constraints and lower Gen-1 electric vehicle volumes. The lower volume base pressured the top line, but Ford’s focus on higher-value products supported profitability.
Strong mix and net pricing were the main contributors to the quarter’s EBIT improvement. Off-road vehicles accounted for nearly one-fourth of U.S. sales, while the Bronco family posted record second-quarter sales.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Blue Posts Sharp Profit Growth
Ford Blue revenues increased 1% year over year to $26.1 billion despite an 8% decline in wholesales to 639,000 units. Segment EBIT climbed 72% to $1.135 billion, while the EBIT margin improved to 4.4% from 2.6%.
The gain reflected favorable product mix, higher net pricing and disciplined channel management. Explorer and Expedition retail sales rose 22%, while the off-road mix increased more than four percentage points in the quarter.
Ford Model e Narrows Its Operating Loss
Ford Model e revenues plunged 56% year over year to $1 billion as wholesales fell 53% to 28,000 units. However, the segment’s EBIT loss narrowed 31% to $919 million, marking a third consecutive quarter of year-over-year improvement.
Structural cost reductions, right-sized Gen-1 volumes and lower U.S. incentives aided results. Management expects Gen-1 EBIT to improve about 40% in 2026 as it continues investing in the Universal Electric Vehicle platform and Ford Energy.
F Pro Results Affected by Aluminum Supply Pressure
Ford Pro revenues declined 5% year over year to $17.8 billion as wholesales fell 13% to 372,000 units. Segment EBIT dropped 26% to $1.718 billion, and the EBIT margin narrowed to 9.7% from 12.3%.
Temporary Novelis-related aluminum constraints weighed on Super Duty production. Ford expects to recover postponed fleet orders in the second half, with additional capacity from the Oakville facility supporting improved availability.
On the brighter side, total paid subscriptions grew about 50% to roughly 1.6 million, including more than 900,000 Ford Pro Intelligence subscriptions. BlueCruise paid subscriptions rose 20% and represented half of retail integrated-services revenues.
Other Tidbits
Ford Credit generated pretax earnings of $757 million, up $112 million from the prior-year quarter. The improvement reflected a strong financing margin, a high-quality portfolio and disciplined capital and risk management.
Operating cash flow totaled $4.3 billion, while adjusted free cash flow was $2.1 billion. Ford ended the quarter with $22.3 billion in cash and $43.4 billion in total liquidity.
The company reported a GAAP net loss of $1.3 billion, including a $3.6 billion largely non-cash charge tied to the BlueOval SK joint venture disposition. Ford also declared a regular quarterly dividend of 15 cents per share.
Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
F Raises Full-Year 2026 Guidance
Ford raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. It also increased adjusted free cash flow guidance to $6-$7 billion from $5-$6 billion, while keeping capital spending at $9.5-$10.5 billion.
By segment, Ford now expects Ford Blue EBIT of $5-$5.5 billion, Ford Pro EBIT of $7-$7.5 billion, a Model e loss of about $4 billion and Ford Credit pretax earnings above $2.5 billion. The outlook assumes a U.S. SAAR of 16-16.5 million units and about $1 billion in material and warranty cost reductions.
Other Key Releases From the Auto Space
General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected to be $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tesla, Inc.

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