Wells Fargo Maintains Underweight on Tesla as Q2 Deliveries Slump

Q2 Delivery Trends

Wells Fargo analysts reiterated an Underweight rating and a $120 price target on Tesla (NASDAQ: TSLA), citing another weak quarter ahead:

• Global deliveries in May trended 23% lower y/y.

• Q2 QTD figures are 21% lower y/y.

• All regions—North America, Europe, China—report double‑digit declines; Europe leads with a 42% y/y drop in Q2 QTD deliveries.

North America deliveries are down 13% QTD y/y amid steady EV demand erosion, rising competition, and brand concerns linked to Musk's political actions. In China, Tesla volumes are 22% lower QTD as local OEMs like BYD and Chery undercut TSLA on price.

Fundamentals & Margin Pressure

Wells Fargo warns that the core auto business fundamentals continue to weaken:

• Order‑pricing on Tesla's website has held stable LTM, but

• Aggressive financing promotions act effectively as hidden price cuts.

This mix of lower leverage and promotional pricing threatens Q2 margins. For deeper analysis of Tesla's margin trends and cash‑flow dynamics, the Financial Growth Statement Analysis API provides a breakdown of revenue growth, operating cash flow, and capital investments over time.

Historical Earnings Context

Tesla's delivery woes tie directly into its earnings trajectory:

• Past quarters of margin compression have often followed delivery dips.

• Seasonality and one‑off factors (e.g., factory shutdowns) also play roles.

To benchmark Tesla's recent performance against historical patterns, reference the Earnings Historical API, which offers quarter‑by‑quarter EPS, revenue, and surprise metrics—critical for discerning whether Q2 will underperform consensus again.

Analyst Rating & Company Profile

With deliveries sliding and margins under threat, Wells Fargo's caution aligns with broader market skepticism. For a snapshot of how Wall Street rates Tesla today, including analyst consensus grades and price‑target distributions, check the Company Rating API. It aggregates buy/hold/sell recommendations and offers insight into overall sentiment toward TSLA.