Tesla shares traded slightly lower on Thursday, extending losses from the previous session as weak European sales figures overshadowed early-week gains driven by the launch of the company’s long-awaited robo-taxi service.
The TSLA stock was 0.4% down in early trading on Thursday after shedding nearly 4% on Wednesday.
Shares of the electric vehicle maker remain up 1.7% for the week, buoyed by an 8% surge on Monday following the robotaxi rollout in Austin, Texas.
Tesla’s stock, however, has struggled in 2025, declining roughly 15% year to date.
Tesla to report Q2 deliveries next week
Attention is now shifting to Tesla’s upcoming second-quarter vehicle delivery report, expected next week.
Baird analyst Ben Kallo expressed caution ahead of the release, forecasting deliveries of 377,000 units, below the consensus estimate of 390,000 tracked by FactSet.
While Kallo emphasized that deliveries remain a key fundamental for investors, he noted that “the recent launch of robo-taxi and excitement regarding the opportunity will likely take precedence over the near term.”
Baird maintains a Neutral rating on the stock with a $320 price target.
UBS has also lowered its estimate for Tesla’s second-quarter vehicle deliveries to 366,000 units, roughly 10% below current consensus expectations.
The brokerage maintains a ‘Sell’ rating on the stock with a price target of $215, implying a 37% downside from Tuesday’s closing price.
UBS cited continued weakness in demand as a key concern going into the quarter.
The revised forecast follows a similar view from Barclays analyst Dan Levy, who last week projected Tesla’s second-quarter deliveries at 375,000 units—10% lower than the same quarter last year and also below consensus.
All the above projections fall short of the 444,000 deliveries Tesla reported in the second quarter of 2024.
Analyst sees over 40% upside for TSLA stock
Benchmark analyst Mickey Legg raised his price target on Tesla to $475 from $350, citing what he described as a “successful” robotaxi debut.
“While limited, we believe the controlled rollout demonstrates a controlled and safety-first approach,” Legg said in a note to clients on Thursday.
“Winning over regulators and public opinion is paramount and will allow a rapid scale-up if achieved, in our opinion.”
Legg pointed to new autonomous vehicle regulations set to take effect in Texas on September 1 as a potential catalyst for Tesla’s expansion into additional markets.
He also argued that Tesla’s camera-based approach to self-driving offers a better value proposition compared to Alphabet’s Waymo, which relies heavily on lidar and other sensors.
Legg acknowledged that Waymo maintains a first-mover advantage in autonomous driving, but believes Tesla’s solution is more scalable and cost-effective.
Tesla sales in Europe
Tesla’s declining European performance added pressure to the stock.
The company sold 13,863 vehicles in Europe during May, down 28% year over year.
For the first five months of 2025, Tesla’s sales in the region have dropped 37% compared to the same period in 2024.
In contrast, overall EV sales in Europe have increased 27% during the same period, highlighting Tesla’s market share erosion in the region.
Tesla’s weakening performance in Europe contrasts with the optimism surrounding its autonomous driving ambitions, underscoring the mixed signals investors are navigating.
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