Zacks Research Issues Negative Outlook for Tesla Earnings

12 Aug 2026, 05:28 by Mitch Edgeman · The Markets Daily

Tesla, Inc. (NASDAQ:TSLA – Free Report) – Stock analysts at Zacks Research lowered their Q3 2026 earnings per share estimates for Tesla in a research note issued to investors on Wednesday, August 5th. Zacks Research analyst Team now forecasts that the electric vehicle producer will post earnings of $0.19 per share for the quarter, down from their previous forecast of $0.22. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Tesla’s current full-year earnings is $0.88 per share. Zacks Research also issued estimates for Tesla’s Q4 2026 earnings at $0.16 EPS, FY2026 earnings at $0.58 EPS, Q2 2027 earnings at $0.05 EPS, Q3 2027 earnings at $0.06 EPS, Q4 2027 earnings at $0.12 EPS, FY2027 earnings at $0.29 EPS, Q1 2028 earnings at $0.06 EPS, Q2 2028 earnings at $0.06 EPS and FY2028 earnings at $0.29 EPS.

Tesla (NASDAQ:TSLA – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The electric vehicle producer reported $0.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.17). The firm had revenue of $28.24 billion during the quarter, compared to the consensus estimate of $26.42 billion. Tesla had a return on equity of 3.82% and a net margin of 3.67%.Tesla’s revenue for the quarter was up 25.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.33 EPS.

TSLA has been the topic of several other research reports. Wells Fargo & Company reissued an “underweight” rating and set a $130.00 price objective (up from $125.00) on shares of Tesla in a research note on Tuesday, July 14th. Guggenheim started coverage on shares of Tesla in a report on Monday, June 29th. They set a “neutral” rating for the company. BNP Paribas Exane cut Tesla from a “hold” rating to an “underperform” rating in a research report on Friday, June 5th. Truist Financial set a $370.00 price target on Tesla and gave the stock a “hold” rating in a research note on Thursday, July 23rd. Finally, Stifel Nicolaus set a $491.00 price objective on Tesla and gave the company a “buy” rating in a research report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, nineteen have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $401.74.

Get Our Latest Research Report on TSLA

Tesla Stock Up 0.6%

Shares of Tesla stock opened at $332.81 on Monday. Tesla has a 1 year low of $297.38 and a 1 year high of $498.83. The firm has a market cap of $1.31 trillion, a price-to-earnings ratio of 308.16, a PEG ratio of 16.71 and a beta of 1.83. The company has a 50-day moving average of $375.24 and a 200 day moving average of $392.14. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.55.

Insider Activity at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the sale, the chief financial officer owned 22,039 shares in the company, valued at $8,864,085.80. This represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 19.90% of the stock is currently owned by insiders.

Institutional Trading of Tesla

Several institutional investors have recently added to or reduced their stakes in TSLA. Crestwood Advisors Group LLC lifted its holdings in Tesla by 34.7% during the 4th quarter. Crestwood Advisors Group LLC now owns 19,567 shares of the electric vehicle producer’s stock worth $8,799,000 after buying an additional 5,039 shares in the last quarter. Calamos Wealth Management LLC grew its stake in shares of Tesla by 5.9% in the fourth quarter. Calamos Wealth Management LLC now owns 41,907 shares of the electric vehicle producer’s stock worth $18,846,000 after acquiring an additional 2,341 shares in the last quarter. Private Capital Advisors Inc. increased its position in shares of Tesla by 139.3% during the fourth quarter. Private Capital Advisors Inc. now owns 21,331 shares of the electric vehicle producer’s stock worth $9,593,000 after acquiring an additional 12,417 shares during the period. Wealthquest Corp purchased a new stake in shares of Tesla during the fourth quarter worth $1,035,000. Finally, Knights of Columbus Asset Advisors LLC raised its stake in shares of Tesla by 34.8% in the fourth quarter. Knights of Columbus Asset Advisors LLC now owns 64,481 shares of the electric vehicle producer’s stock valued at $28,998,000 after acquiring an additional 16,652 shares in the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

Positive Sentiment: Retail investors reportedly returned to Tesla, while enthusiasm surrounding humanoid robotics and physical-AI stocks supported the broader investment narrative around Tesla’s Optimus and Robotaxi ambitions. Tesla Stock Is on a Roll as Retail Traders Buy In
Positive Sentiment: Tesla and SpaceX’s planned $16.8 billion Terafab semiconductor project in Texas reinforced expectations that Tesla is building infrastructure for AI, autonomy and robotics. The scale of the investment is substantial, however, relative to Tesla’s roughly $3.8 billion trailing annual profit. Tesla and SpaceX Committed $16.8 Billion to One Chip Plant
Positive Sentiment: New technology catalysts included built-in SpaceX Starlink connectivity for Cybercab robotaxis and the emergence of an FSD v14.1 Lite version. Tesla’s design chief also said the next-generation Roadster reveal is coming soon. Tesla Built a Starlink Internet Dish Into Its Cybercab Robotaxi
Positive Sentiment: Energy storage provided an additional growth story: SpaceX reportedly purchased nearly $300 million of Tesla Megapacks for AI data-center infrastructure, highlighting potential demand beyond vehicle sales. Tesla’s Energy Business Just Got a SpaceX Demand Signal
Neutral Sentiment: Morgan Stanley maintained a Hold rating and a $400 price target, saying Tesla needs measurable Robotaxi scaling, more driverless miles and evidence of attractive unit economics before its premium valuation can be justified. Tesla Physical AI Prospects Balanced by Execution Risks
Negative Sentiment: Tesla recalled 20,349 U.S. Model 3 and Model Y vehicles because excessively bright low-beam headlights could impair oncoming drivers. Regulators have not finalized a repair plan, adding to existing safety scrutiny. Tesla to Recall Over 20,000 U.S. Vehicles
Negative Sentiment: China retail sales fell 32% even as the broader battery-EV market grew 6%, signaling competitive and demand pressure in a key market. Robotaxi paid miles also reportedly declined about 36% sequentially in the second quarter. Tesla Retail Sales in China Drop 32%
Negative Sentiment: The investment case remains highly execution-dependent. Tesla recently missed earnings expectations, operating margins fell to about 1.4%, free cash flow turned negative and capital expenditures are tracking above $25 billion. With a valuation above 300 times earnings, disappointing autonomy or software progress could trigger a sharp re-rating.

Tesla Company Profile

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Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.