Zacks Research Has Negative Outlook for Tesla Q2 Earnings

Tesla, Inc. (NASDAQ:TSLA) – Equities research analysts at Zacks Research reduced their Q2 2026 EPS estimates for shares of Tesla in a research report issued on Tuesday, March 31st. Zacks Research analyst Team now anticipates that the electric vehicle producer will post earnings of $0.27 per share for the quarter, down from their prior estimate of $0.28. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Tesla’s current full-year earnings is $2.56 per share. Zacks Research also issued estimates for Tesla’s FY2028 earnings at $0.52 EPS.

Tesla (NASDAQ:TSLA) last released its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. The business had revenue of $24.90 billion during the quarter, compared to the consensus estimate of $24.75 billion. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The business’s revenue was down 3.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.73 EPS.

Several other equities analysts have also recently weighed in on the company. Tigress Financial started coverage on Tesla in a report on Thursday, February 12th. They set a “buy” rating and a $550.00 price target for the company. Stifel Nicolaus set a $508.00 price objective on Tesla in a report on Thursday, January 29th. TD Cowen increased their target price on Tesla from $509.00 to $519.00 and gave the company a “buy” rating in a research report on Thursday, January 29th. Royal Bank Of Canada reissued an “outperform” rating and issued a $500.00 target price on shares of Tesla in a report on Thursday, January 29th. Finally, Glj Research restated a “sell” rating on shares of Tesla in a research report on Monday. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and ten have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $403.98.

Tesla Trading Up 4.6%

Shares of TSLA stock opened at $371.75 on Wednesday. The company has a current ratio of 2.16, a quick ratio of 1.77 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $1.39 trillion, a price-to-earnings ratio of 344.21, a price-to-earnings-growth ratio of 10.52 and a beta of 1.89. Tesla has a 12-month low of $214.25 and a 12-month high of $498.83. The stock’s 50-day moving average price is $405.61 and its 200-day moving average price is $428.65.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. J. Derek Lewis & Associates Inc. purchased a new stake in shares of Tesla in the fourth quarter valued at $18,466,000. Purpose Unlimited Inc. purchased a new position in shares of Tesla during the 4th quarter worth about $328,776,000. Cornerstone Planning LLC bought a new position in Tesla during the 4th quarter valued at about $665,000. AMG Asset Management Group Inc. purchased a new stake in Tesla in the 4th quarter worth about $610,000. Finally, Forty three Eighteen Advisors LLC purchased a new stake in Tesla in the 4th quarter worth about $2,784,000. Institutional investors own 66.20% of the company’s stock.

Insider Activity

In related news, Director James R. Murdoch sold 60,000 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the sale, the director owned 577,031 shares in the company, valued at approximately $257,009,607.40. This represents a 9.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Vaibhav Taneja sold 2,264 shares of the firm’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $397.03, for a total value of $898,875.92. Following the completion of the sale, the chief financial officer owned 18,106 shares of the company’s stock, valued at approximately $7,188,625.18. This represents a 11.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 87,995 shares of company stock valued at $38,315,650 in the last ninety days. Insiders own 19.90% of the company’s stock.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Market rally driven by three converging catalysts — delivery optimism, Terafab/chip-factory talk and SpaceX merger/buzz — that traders say gives the move legs. This is cited as the main reason TSLA popped intraday. Tesla Surges 5%: Delivery Hopes, Terafab, and SpaceX Buzz Are All Converging at Once
• Positive Sentiment: Reports of a deeper Tesla–SpaceX chip/semiconductor partnership (new fab plans in Texas and talk of coordinated chip strategy) are being read as a strategic lever for Tesla’s AI/robotics roadmap and supply security. Tesla Appears to Have a New Master Plan… and SpaceX Is a Huge Part of It
• Positive Sentiment: Analysts (Canaccord) nudged up Q1 deliveries estimates and a positive research note earlier in the day helped sentiment despite mixed modeling — supporting near‑term optimism ahead of the delivery print. Canaccord Lifts Q1 Deliveries Estimate, But Cuts Tesla Stock (TSLA) Price Target, Here’s Why
• Positive Sentiment: Renewed optimism on Tesla’s AI/robotics (Optimus) and product updates lifted risk‑on positioning among growth investors. Tesla jumps 4% on Optimus buzz and market rebound momentum
• Neutral Sentiment: Q1 delivery results (due Thursday) are the immediate catalyst — expectations are ~365k units. That print can swing the stock materially both ways. Tesla (TSLA) Stock: Analysts Brace for Q1 2026 Delivery Numbers This Thursday
• Neutral Sentiment: Euro NCAP and other safety/oversight headlines continue to stir debate around Full Self‑Driving credibility — newsflow here creates volatility but is ambiguous in directional impact. Euro NCAP: Full Self-Driving “Irresponsible,” Tesla Stock (NASDAQ:TSLA) Surges
• Negative Sentiment: Several analysts have cut price targets and some firms reiterated “sell” or trimmed exposure (GLJ, Canaccord cut PT from $520 to $420) — a reminder Wall Street is increasingly skeptical on margins and valuation. Canaccord price target cut coverage
• Negative Sentiment: Regulatory and operational risks persist: NHTSA scrutiny of autonomy, talent departures (head of customer experience to Coinbase), and ongoing concerns about automotive margins and pricing pressure. These are downside risks if deliveries or margins disappoint. Will NHTSA Investigation Derail Tesla’s Physical AI Dreams?

About Tesla

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.

Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.