The investment bank said that after Tesla announced its second-quarter financial report, it still listed it as one of the key recommended targets. Although the electric vehicle manufacturer failed to meet market expectations in its quarterly results, achieving both revenue and earnings "falling". Its auto business revenue fell 16% year-on-year to $16.7 billion, the long-term outlook is still promising.
Morgan Stanley analyst Adam Jonas (Adam Jonas), as a well-known "Tesla bull" on Wall Street, also adjusted the company's fiscal year profit forecast this time-the 2025 fiscal year earnings per share (EPS) forecast was lowered by 14%. It explained that the decline in delivery volume and the increase in operating expenses were the main reasons for this adjustment.
Jonas pointed out in the report: "The performance of the second quarter was slightly better than expected, and free cash flow was close to breakeven. Tesla is at a critical stage of its transition from a traditional manufacturer to a fully autonomous driving company, while also dealing with slowing sales, elimination of electric vehicle incentives, tariff pressure and continued investment in new businesses that have not been profitable for a long time."
As an automotive and clean energy company, Tesla is actively applying artificial intelligence to autonomous driving technology and robotics projects. The AI strategy has become one of the core pillars of the company's long-term growth.
However, the report also reminds investors that although TSLA has great potential, some AI concept stocks have higher short-term upside and lower downside risks. Finally, the report suggests paying attention to those high-quality AI stocks whose valuations are obviously low and are expected to benefit from the tariff policy and manufacturing onshoring trend in the Trump era, saying that readers can consult its free report to get the list of the best short-term AI investment targets.
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