Bank of America says ‘results matter, but growth factors may matter more.’
Justin Sullivan
Bank of America said Tesla’s headwinds are well known and are likely fully reflected in the stock price. That will make the company’s commentary around the current state of EV demand and its future growth plans all the more important.
They think that could be setting up the stock for a positive reaction.
“Despite near term pressures, the unveiling of future growth drives has the potential to support the stock,” Bank of America said. “Results matter, but growth factors may matter more.”
While the bank doesn’t expect Tesla to make any big product announcements during its earnings call, it could provide some hints on the highly anticipated Robotaxi event which is scheduled for August 8. Tesla could also reiterate its intention to launch a low-cost Model 2 in 2025 or 2026, which would likely be met with a positive price reaction in the stock.
Bank of America rates Tesla at “Neutral” with a $220 price target.
